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American Morning

New York Transit Strike Ends, Negotiations Resume; Rumsfeld Orders U.S. Troop Reductions In Iraq

Aired December 23, 2005 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


SOLEDAD O'BRIEN, CNN ANCHOR, AMERICAN MORNING: Good morning. Welcome everybody. It's Friday. And I'm Soledad O'Brien.
RICK SANCHEZ, CNN ANCHOR, AMERICAN MORNING: And I'm Rick Sanchez in for Miles.

O'BRIEN: Miles has taken a whole week off, we really appreciate you helping us out.

SANCHEZ: It's been fun.

O'BRIEN: Thank you.

Let's start with our big story this morning. New York City is back on the move. The subways and the buses are rolling. Kind of an early Christmas present for millions of commuters. We've got a live report on that just ahead.

Last minute shopping and trips home for the holidays, millions of people are expected to jam the highways and the airport today. We have an update on that for you, as well.

SANCHEZ: Downsizing the number of U.S. troops in Iraq. A surprise announcement from Defense Secretary Donald Rumsfeld. We're going to tell you what he said.

And then on Capitol Hill, the House shortens the deadline for renewing the Patriot Act. The battle will be fought again, and soon.

O'BRIEN: And a multi-million judgment against Wal-Mart. Were employees forced to skip lunch breaks? This case isn't over yet.

Welcome everybody. Right now buses and subways, as we mentioned, are rolling here in New York. Transit workers are going back to work. It happened overnight after agreeing to end their strike, but the contract disputes that caused the walkout still very far from being settled. And there is a chance, of course, that all of this could happen again.

Meanwhile, it's rush hour. Let's get right to Chris Huntington; he's live for us at Penn Station this morning, which, of course, is usually incredibly busy at this hour.

How's it looking, Chris.

CHRIS HUNTINGTON, CNN CORRESPONDENT: Soledad, don't you dare say that this could happen all over again. That's not something that folks want to hear down here. It's relatively quiet right now, Soledad. Of course, it's just after 6 a.m.

This is probably going to be a quiet day for commuting, the Friday before Christmas and Hanukah. The "New York Post" sums it up, though, "It's Over!"

And I can tell you from riding the trains in this morning, that it was a beautiful thing. I had a seat, was able to read some papers. Folks definitely seemed to be enjoying the fact that we're back to normal. It's a little bit like the relief you get, I suppose, from stop banging your head against the wall.

We are back to status quo here in New York and probably won't be long before people are complaining about the subway service. But the fact is, the strike that lasted about 60 hours, is over, for now.

Still a big gap between the transit union and the Transit Authority about the terms of the contract still to be hammered out, so that will go on for a while.

But, Soledad, definitely good news and a big boost no doubt, for the city's retailers that missed out, no question about it, on some shopping in the last few days.

O'BRIEN: Let's get to the nuts and bolts, Chris. So, what exactly brought the union back to the negotiating table? What did the deal?

HUNTINGTON: You have to give credit to the state mediator. Papers here in New York reporting that the mediator took both sides individually out of the Hyatt Hotel, which had been the main focus. And indeed, was swarmed by media. Took them to a separate hotel. They ate some sandwiches, they just chilled out a bit. And it was really the cool heads, apparently, off site that really helped things get back.

The fines, the penalties, the threat of jail for union leader Roger Toussaint, certainly had to play a role. And finally, the fact that the Transit Authority agreed, at least for the time being to take the issue, its request, to push pension eligibility to an older age -- took that off the table for now. So all those factors combined to bring the two sides -- at least to an agreement to come back to work -- Soledad.

O'BRIEN: I know you kind of balked when I said that this could happen again, this potentially could happen again. But I mean, realistically, the deal is not done, right? And they're negotiating over a contract, so if they don't come to a decision or an agreement, they could walk off the job, one day, again soon, right?

HUNTINGTON: It is -- it is possible, Soledad. But when you consider, literally, the legal and the financial penalties that Roger Toussaint alone faces. You know, the union is facing a judge-imposed penalty of a $1 million a day for strike time. He still has jail time potentially hanging over his head, as well as some other union leaders. And also, now, just politically for Toussaint, who is indeed, a political figure here in New York City, he has angered all of New York. So, he has to weigh those factors in whether or not he would push his executive board and his rank-and-file members of the transit union for another walk out. Very, very unlikely, have to say.

O'BRIEN: Chris Huntington, live at Penn Station for us this morning. Chris, thanks.

Rick?

SANCHEZ: Well, today is among the two or three busiest travel days of the year. Millions of you are expected to hit the roads or maybe get on a plane, like myself later on. AMERICAN MORNING's Alina Cho is at LaGuardia Airport, here in New York.

I'll be seeing you there at some point, soon, Alina. How are things going thus far?

ALINA CHO, CNN CORRESPONDENT: Well, Rick, I hope you're not traveling any time soon, because it is very, very crowded. Just take a look behind me here. It is a mob scene here at LaGuardia Airport, and I can tell you the traffic coming in, particularly as you get close to the terminal, is horrendous. So give yourself some extra time.

And keep in mind, that it is only 6 o'clock in the morning. Now despite double-digit increases in airfares and gas prices this year AAA estimates that 63.5 million Americans will travel between Christmas and New Year's this year.

That's about a 2 percent increase over last year. And I can tell you that the vast majority, 80 percent will travel by car; 14 percent will travel by plane; and another 6 percent will take some other mode of transportation, like trains or buses.

Now, here at LaGuardia, I can tell you at this early hour, despite the morning rush, things are moving pretty smoothly. That is the good news. No reported delays on the screens and I can tell you that the TSA security people are telling me that moving through security is pretty easy as well. Taking about 10 to 15 minutes at this early hour.

Now, that's despite the fact that the TSA instituted some new rules yesterday. Travelers are now able to take some small scissors and some small tools in their carry on luggage. But they'll also be subjected to more random searches and more thorough pat downs.

Rick, one other bit of good news on the local front, as you well know, we were just reporting, the transit strike is now over, so travelers do not have to worry about finding a way to get to the airport.

SANCHEZ: Sounds good, Alina Cho. Following things there. I have a feeling I'm going to be talking to you again, throughout the morning, checking on how things are going.

Oh, let's do this. Let's check the forecast as well.

(WEATHER FORECAST)

O'BRIEN: President Bush is ready to cut the number of troops in Iraq. What would happen is this, two Army brigades currently scheduled for combat tours would have their deployments canceled. In addition, thousands of troops, U.S. troops in Iraq for election security, would come home now that the voting is over. Let's get more now from CNN's Pentagon Correspondent Barbara Starr.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (on camera): Defense Secretary Donald Rumsfeld arrived in Iraq to wish the troops a happy holiday and to meet with his commanders to make final plans about reducing troops levels in the new year.

DONALD RUMSFELD, SECRETARY OF DEFENSE: At the recommendation of our military commanders, in consultation with our coalition partners, and in consultation with the Iraqi government, President Bush has authorized an adjustment in U.S. combat brigades in Iraq, from 17 to 15.

STARR (voice over): About 7,000 to 10,000 troops that were expected to go to Iraq in early 2006 are likely now to stay in place, both in Kuwait and in the United States. Some of them may go to train Iraqi forces, that will be part of the 2006 strategy. Less troops for combat, more troops for helping the Iraqis.

UNIDENTIFIED MALE: The typical things that you might see associated with combat operations, cording knots (ph), patrols, sweeps, those types of things that you've been reading about American soldiers and Marines doing over the last year, you're going to read increasingly about Iraqi units doing those things.

STARR (on camera): With the shift in strategy away from having so many troops in combat and providing more of a support role to the Iraqis the Pentagon hopes it can convince Congress and the American public that in 2006, the issue is not so much the precise number of U.S. troops in Iraq, but the job that they are doing. Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

O'BRIEN: Coming up in our next hour, we're going to talk troop reduction with Retired U.S. Army General and CNN Military Analyst James Spider Marks.

Rick.

SANCHEZ: Here's a change from what we told you yesterday, on Capitol Hill, lawmakers voting late Thursday to extend the controversial Patriot Act for just another five weeks. Remember the day before, the Senate had voted for a six-month extension. What happened? Well, House Judiciary Chairman James Sensenbrenner objected. Saying that six months was just too long.

(BEGIN VIDEO CLIP)

REP. JAMES SENSENBRENNER (R) WISCONSIN: I did not want to leave the American public more vulnerable to a terrorist attack, because a filibuster went on in the Senate. And I can conceded the president's point on that. The fact is that a six-month extension, in my opinion would have simply allowed the Senate to duck the issue until the last week in June.

(END VIDEO CLIP)

SANCHEZ: Well, the Senate, with only one member left at the chamber, agreed to the House demands, virtually guaranteeing another battle when Congress returns after the holidays. President Bush is expected to sign off on this temporary extension, as it is being called -- Soledad.

O'BRIEN: Well, now that the subways, buses -- are rolling again in New York, can New Yorkers have a big sigh of relief? The union still has no contract. So is it really over yet? We'll take a look at that.

SANCHEZ: Also a jury is ordering Wal-Mart to pay out big for mistreating its workers. The details are coming up in business news.

O'BRIEN: And Christmas is a little bit brighter on the Gulf Coast thanks to the kindness of strangers. We'll tell you that story, first though, here is a holiday message from the troops.

(BEGIN VIDEO CLIP)

SGT. R. CRENSHAW: Hello, I'm Sergeant 1st Class Crenshaw of Taji (ph), Iraq. I wish to give a special holiday greeting to my wife, Lydia. Happy holiday, honey. And send me some special things as soon as possible.

PFC DANIEL CROSS: Hi, my name is PFC Daniel Cross and I'm from Flaumont (ph), Texas, and I'm over here in Taji (ph), Iraq. I want to wish my mom and my dad, and all three of my sisters and my brother, happy holidays. I miss you guys, and I love you very much.

(END VIDEO CLIP)

O'BRIEN: Oh, my, that's a shot of LaGuardia. And look, already the lines, forming and it's only 6:13 here on the East Coast.

SANCHEZ: Just make sure -- well, no -- you can take scissors now. As long as they're little scissors, you'll be OK.

O'BRIEN: Yeah, you would think that it would move things along a little bit. But judging by those lines and (INAUDIBLE), not going to happen.

SANCHEZ: Wrong time of year to do anything fast.

O'BRIEN: Welcome back, everybody. Let's get right to Kelly. She's got an update on the stories we're following this morning.

Good morning.

KELLY WALLACE, CNN NEWS ANCHOR, AMERICAN MORNING: Good morning, Soledad. And hello to all of you.

Well, this is one of those days where it is good news to say it is back to the same ol' rush hour this morning for New York City. The city's subways and buses are rumbling back to life after a three-day transit strike was called off. Union leaders had been threatened with jail time, while the union itself faced a $1-million-a-day fine.

Despite the strike's end, there is still no contract. And in 15 minutes we'll get another report from Penn Station on how this morning's commute is going.

The man accused of sexually assaulting a New York woman on Halloween night is due in court today. Police say Peter Brownstein posed as a firefighter and sexually abused a former co-worker for 12 hours. He alluded police for weeks before being nabbed in Tennessee. He's expected to enter a plea today. Brownstein also has been ordered to undergo psychiatric testing. In addition to sexual abuse, Brownstein faces kidnapping and robbery charges.

More help on the way for the U.S. Gulf region trying to rebuild after a devastating hurricane season. The U.S. House has approved a defense spending bill that includes $29 billion in hurricane relief. The spending measure also includes $50 billion for the Pentagon to keep U.S. troops in Iraq and Afghanistan.

President Bush apparently wanted broad war making authority in the United States right after the September 11 terrorists attacks. Former Senate Majority Leader Tom Daschle says congressional negotiators turned down the administration's request. He reveals all of this in an opinion page article in today's "Washington Post".

Daschle says, quote, "This last-minute change would have given the president broad authority to exercise expansive powers, not just overseas, but right here in the United States, potentially against American citizens."

And for the first time since Hurricane Katrina, Bourbon Street, New Orleans is open all night long. Starting today, the curfew is lifted for all parts of the city west of the Industrial Canal. Neighborhoods east of the canal, including the devastated Lower Ninth Ward, are still under curfew. Some owners are still waiting for insurance payments to decide if they will rebuild.

So what's it going to look like for most of us today on this Friday before the holiday weekend?

(WEATHER FORECAST)

SANCHEZ: Well, a California jury has put Wal-Mart on the -- you might say, the not-so-nice, or maybe even the naughty list. It happened Thursday. Andy Serwer is here with some financial news.

Wal-Mart, again!

ANDY SERWER, CNN ANCHOR, AMERICAN MORNING: And they have --

SANCHEZ: They can't step out of it.

SERWER: No, they're in the spotlight. They are, that's right.

An Oakland, California jury, you guys has awarded $172 million to 116,000 current and former Wal-Mart employees. At issue, the jury says, the company did not provide adequate lunch breaks. And this is a big deal because the company faces dozens so-called wage and hour class-action lawsuits.

The company says it has not engaged in any wrongdoing and will appeal. The big question is company-wide, is there so much pressure brought to bare on managers, that it engages in this kind of activity, which gets very close to breaking the law -- or, in fact, breaks the law, according to the jury.

We have a picture here. This is a viewer quiz. We want to ask you, which one is the plaintiff's lawyer and which one is the big bad company lawyer? OK? It's pretty obviously, right?

SANCHEZ: Probably the inverse, right?

SERWER: You could see, exactly, though the company lawyer, the Wal-Mart lawyer is the on the left, the plaintiff lawyer on the right.

And the award averages out to about $1,500, per employee, depending on tenure and seniority.

SANCHEZ: Apparently, what the rule is if you work through your lunch break, for example, which is supposed to be a half hour, then the company has to pay you double that, later on in the day.

SERWER: Right.

SANCHEZ: In other words it is almost as if you worked an hour, right?

SERWER: Right.

SANCHEZ: And they didn't do that.

SERWER: They didn't. And then the company now has a system where the cashiers, the registers automatically shut off at a certain point. So, employees are actually sort of forced to take a lunch break.

O'BRIEN: Yes, apparently, the company said that some people would say, listen, I rather not take my lunch break and just skip out 30 minutes early.

SANCHEZ: Hmm?

SERWER: Right.

O'BRIEN: That was their side of the story. That, that wasn't actually considered or calculated in by the jurors.

SERWER: Yes, it is kind of complicated stuff, actually.

O'BRIEN: It's interesting though. Thanks, Andy.

SERWER: You're welcome.

O'BRIEN: Let's get right back to Kelly, she's got a look at what's coming up on "Morning Coffee".

WALLACE: Yes, Soledad, this is one that I think a lot of people will pay close attention to. Tired of losing sleep because of a loud snorer? We'll tell you about a new remedy that seems to really work and it involves and ancient Australian instrument. Curious? Want the answers? Stay with us. We'll have them, coming up, on AMERICAN MORNING.

(COMMERCIAL BREAK)

(HOLIDAY CHATTER)

O'BRIEN: Oh, what a great voice. Welcome back, time for a little "Morning Coffee".

WALLACE: Yes.

O'BRIEN: Good morning.

WALLACE: Yes, I know. Good morning, Soledad.

This one, I don't know about you, but I'm paying very close attention to. Do you have a snorer in the household?

O'BRIEN: I don't.

SANCHEZ: Men don't snore!

WALLACE: Oh, I know, that's right. Men don't snore! This just in, you heard it here. Well, I don't know about that. We have some good news for people who live with snorers. There is some new research, coming out of Switzerland, that says playing the didgeridoo could stop that snoring.

SANCHEZ: The what?

O'BRIEN: Didgeridoo?

WALLACE: Yes, that's what you say. Didgeridoo? You might want to know, what is it? I wanted to know, what is it?

O'BRIEN: It's that!

WALLACE: You're taking a look at it now. An Australian didgeridoo is large wooden horn. You see it there.

O'BRIEN: You hit the snorer over the head with it?

(LAUGHTER)

SANCHEZ: He'll stops breathing and he'll stop snoring.

WALLACE: That's actually one possibility if this doesn't work. Because you see what you're supposed to do, is you see this didgeridoo. Well, what you're supposed to do, that didgeridoo players snored a lot less than non-players, by playing it.

(LAUGHTER)

WALLACE: Now, of course --

O'BRIEN: Where's Andy when we need him?

WALLACE: I know.

SANCHEZ: How do you get it in the house, though?

WALLACE: But as Soledad was bringing up, if it doesn't work, then you can always hit your spouse over the head with it. They're likely to stop snoring. They might stop breathing also.

Anyway, all right. I don't have a didgeridoo, but I might put it on the holiday list.

O'BRIEN: (INAUDIBLE)

WALLACE: Can we move on?

(LAUGHTER)

WALLACE: What I don't understand is when you push the person, after they're snoring, they immediately stop.

SANCHEZ: Yes.

WALLACE: How is that?

O'BRIEN: Oh, no. You have to hold their noses. When they can't breath and they wake up.

SANCHEZ: But then they start again 10 minutes later, probably.

WALLACE: They do. I know.

All right, next story.

An update on Toga, the missing penguin.

O'BRIEN: Whew! Is it bad news?

WALLACE: No news. So that's the thing. And that's kind of bad news. Because no one really knows where the three-month-old baby penguin is right now. It's still missing. And you have police and the Royal Navy running down leads. Call came in yesterday saying Toga was dumped in a harbor, but they didn't find anything there.

The man who runs Toga's zoo says it would be a miracle if the little guy happened to still be alive.

O'BRIEN: Oh, this story is so sad. The first thing my daughter asked about when I came home yesterday.

SANCHEZ: Did they find the penguin?

O'BRIEN: She did. How's the penguin? What happened to the penguin?

WALLACE: I know.

O'BRIEN: How do they -- any idea how they were able to snag him out of the zoo? I mean, you'd think that would be hard to reach into a --

SANCHEZ: Right. And it's so public.

WALLACE: And what's interesting it seems like think that it might be someone taking them, you know, like for a Christmas gift of some sort.

SANCHEZ: Yes.

WALLACE: All right. Well, this one, I thought was very interesting. It seems The Three Little Pigs aren't welcome in Las Vegas, at least not as a slot machine. The Nevada State Gaming Board refused to allow a company to put their chinney-chin-chin machines into casinos.

Well, they say the children's story concept violates their rules. Those rules state that no product can be used to attract gamblers under the age of 21. So, they'll have to stick with the usual games like "The Beverly Hillbillies", "Wheel of Fortune" slots and others. One board member did admit that all of those flashing lights, the bells, the buzzers, are also attractive to younger people. But he says, that is not against the rules.

I didn't really know about that.

SANCHEZ: That's a good rule, though. Let them be kids. You know, we don't need to start training them to be gamblers in the making in the future. Do you think?

O'BRIEN: At age five, that is horrific.

(LAUGHTER)

Absolutely. That's bizarre. Oh, yeah.

(CROSSTALK)

SANCHEZ: Did you see this? This is the newest New York Yankee.

O'BRIEN: It's a sad day for women everywhere!

SANCHEZ: No, he didn't really cut it! I mean, it's still, I mean his hair is about as long as yours. Look at that. That's the newest -- Damon, the newest Yankee. He comes to us from the Red Sox.

O'BRIEN: Do we have a before picture? Here's a guy that is so cute.

WALLACE: Inside the paper, you do, I think.

SANCHEZ: Is there really?

WALLACE: Well.

SANCHEZ: Well, yes, they had it yesterday.

O'BRIEN: Here was a man who was so hot, that long hair and that cute beard.

SANCHEZ: And of course the papers are already playing games.

O'BRIEN: And then all of a sudden, it's like, oh, hi. What happened to you?

SANCHEZ: Well, they have a rule in the Yankees.

WALLACE: They have a rule?

SANCHEZ: They say you have to be a little more -- but that's not exactly a high and tight, I mean, you know.

WALLACE: There he is. Here he is, but you can't really see him because he has a hat on.

SANCHEZ: No, that's Bloomberg with a wig.

(LAUGHTER)

WALLACE: Anyway.

SANCHEZ: Well, there you go. The newest -- and there is this incestuous thing between the Yankee and the Red Sox. The one team grooms them, the other team steals them. And visa versa, year in and year out.

WALLACE: And we were discussing, some people here are saying that he said he would never, ever go play on the Yankees.

O'BRIEN: So they offered him more money --

(CROSSTALK)

SANCHEZ: Cha-ching, cha-ching, every time.

O'BRIEN: That's what its all about. Happy holidays, everybody.

Still to come this morning, up for you, head out on your holiday travels. We can tell you what kind of traffic you can expect on roads, at the airport as well. That's ahead on AMERICAN MORNING. We're back in just a moment.

(COMMERCIAL BREAK)

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