Return to Transcripts main page

CNN Live Today

Ford to Cut Up to 30,000 Jobs; Mining Safety; Warrantless Wiretaps

Aired January 23, 2006 - 11:00   ET

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

DARYN KAGAN, CNN ANCHOR: Let's take a look at what's happening right "Now in the News."
Thousands of jobs are on the line at the Ford Motor Company. The giant automaker announced just moments ago that it's closing some major plants in North America as part of its restructuring plan.

Details in a live report straight ahead.

As West Virginia copes with two mining tragedies in less than a month, mine safety is in the spotlight on Capitol Hill, as we look at live pictures of Senator Arlen Specter. As we see in these pictures, a Senate panel is holding hearings on the issue right now. Fourteen West Virginia coal miners have died in two separate mine accidents since the first of the year.

More details are just ahead.

And you've no doubt noticed it, gas prices are on the rise. In the latest Lundberg Survey, the national average for self-serve regular is up three cents over the last two weeks to $2.33 a gallon. That is nearly 20 cents higher than in early December. Analysts say they expect more price hikes in the weeks ahead.

One day before Saddam Hussein's trial is scheduled to resume in Baghdad, Iraqi officials have named a new interim chief judge. The previous presiding judge resigned earlier this month amid complaints that he was too lax with the defendants in the trial. Charges against Hussein and seven co-defendants stem from the 1982 killings of 148 Iraqis.

There still is no word on the fate of American hostage Jill Carroll. The journalist was kidnapped 16 days ago. Carroll's father is pleading with his daughter's captors to set her free, saying she is not their enemy.

Militants holding Carroll have threatened to kill her unless the U.S. military releases all Iraqi women prisoners in its custody. A deadline set by the kidnappers passed on Friday.

If you use one of those popular e-mail devices known as the BlackBerry, you might soon feel the impact of a decision by the U.S. Supreme Court. The high court has now refused to hear an appeal over patent issues by the Canadian company that makes the BlackBerry. Today's decision means a trial judge in Virginia could impose an injunction against the company and block BlackBerry use among many of its owners here in the U.S.

And we will have more on that BlackBerry news a little bit later in the newscast.

Good morning, everyone. Welcome back to CNN LIVE TODAY.

Checking the time around the world, just after 11:00 a.m. in Dearborn, Michigan, just past 9:00 a.m. on Utah's Mt. Olympus. We'll tell you why we're focused on Mt. Olympus in a bit.

I'm at CNN Center in Atlanta. I'm Daryn Kagan.

First up this hour, the Motown blues. Cuts are job one at Ford today. You heard the announcement just a few minutes ago live right here on CNN.

Ford, like its Detroit brethren, GM, is downsizing to compete with Asia. Both companies are major players in the U.S. economy.

Ford plans to shed as many as 30,000 jobs. Fourteen plants will be cut.

Wall Street is watching, with Ford's North American operation a billion-dollar losing in 2005. And you can see the Dow a little bit strong this morning. It is up about 39 points. Trading has been open about an hour and a half.

We'll check in with Susan Lisovicz in just a moment. But first, let's go to Ali Velshi. He is from outside Detroit in Dearborn, Michigan, on Ford's tough day.

Ali, you were saying the announced cuts even bigger than what was expected.

ALI VELSHI, CNN CORRESPONDENT: Yes, the 25,000 number had been bandied around. Now we're talking about 30,000, plus 4,000 salaried workers, which we had heard were going to happen. So when you take it all together, that's 34,000. Add that to the 10,000 last year -- they had 30,000 cuts in 2002.

If only it were just a blue day for Motown. These cuts are across the country.

They're going to take place between now and 2012. They'll scale some of this down. But let's talk about where they are.

In Atlanta, the Atlanta Assembly Plant, it's actually in Hapeville, Georgia, where they make the Fort Taurus and Mercury Sable. That plant -- I'm sorry, where they make the Lincoln -- no, they do make the Fort Taurus and Mercury Sable there. That plant has been around since 1947. There -- over 2,000 jobs will be lost there.

In Michigan, here, Wixom Assembly Plant, where they make the Lincoln Town Car, the Lincoln LS, the Ford Thunderbird, that -- that plant is going to close. The Batavia Transmission Plant in Ohio, the Windsor, Ontario, Casting Plant, the St. Louis Assembly Plant, 1,445 job where they make the Ford Explorer and other trucks like that. Two additional plants will be announced later this year, and seven more plants that they haven't even named are going to be shut down between 2006 and 2012.

One plant in Ontario, the St. Thomas Plant, where they make the Crown Victoria, that's going to go down to one shift.

These are all across North America, 25,000 to 30,000 jobs.

Bill Ford, the great grandson of Henry Ford who started Ford right here in Dearborn, Michigan, in 1903, had this to say about these painful cuts today...

(BEGIN VIDEO CLIP)

BILL FORD, CHAIRMAN, FORD MOTOR CO.: They're going to affect many lives, many families and many communities. And we'll do everything we reasonably can to ease the burdens.

The people in some of our plants aren't the only ones asked to sacrifice. As you know, we're reducing our salary-related costs by 10 percent. And we're reducing our officer ranks 12 percent by the end of the first quarter.

By taking the actions we are today, in the long run we will create far more stable and secure jobs. We all have to change. And we all have to sacrifice. But I believe this is the path to winning.

(END VIDEO CLIP)

VELSHI: Bill Ford saying that Ford is going to be a big company that thinks like a small company. Well, it's a lot smaller than it used to be, Daryn.

In 1999, this company made a million more cars a year than it does now. And by 2008, they're going to make 1.2 million fewer cars. That's a 26 percent reduction from what they already make right now.

The North American auto operations of Ford are not profitable. The company is profitable, but they don't make money making cars. They make most of their money on financing. Today's announcement saying that they would like to make money making cars by 2008.

So, a major, major restructuring for Ford -- Daryn.

KAGAN: And not just fewer cars, but different types of cars than they're making now.

VELSHI: Yes, he said they want to make -- Bill Ford said they want to make smaller cars, a greater emphasis on hybrids, the whole idea of encouraging people to buy cars where they're not going to go -- go broke just on the gas. There seems to have been a big trend toward that. The Ford Explorer, which is one of their big vehicles, worst month ever this past November. They sold fewer cars in November than ever before. So I think the writing's on the wall, people want cars that use less gasoline.

KAGAN: Ali Velshi, live from Dearborn, Michigan.

Ali, thank you.

And we go from autoworkers now to the future of American coal miners. Their safety is at the center of a major debate this morning after two back-to-back tragedies claimed the lives of 14 West Virginia coal miners.

The governor there now wants state lawmakers to act today on mining reforms. And on Capitol Hill at this hour, lawmakers considering whether Congress should take action.

Looking at live pictures from the Senate hearing on mine safety.

Our National Correspondent Bob Franken has a look at what's behind this new push for safer mines.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): Today's hearings are framed by the raw emotions of another disaster this weekend in coal country, which has such a long history of tragedy.

UNIDENTIFIED MALE: Unfortunately, we don't have a positive outcome from our efforts.

FRANKEN: This time, after a frantic search, two miners were found dead on Saturday. The two had gotten lost in an underground fire in their West Virginia mine. That was just three weeks after 12 died in the aftermath of the Sago, West Virginia explosion underground. Politicians are forced to pay attention to the issue of safety, once again.

SEN. GEORGE ALLEN (R), VIRGINIA: It is a heavily regulated, heavily inspected industry. It is also, please understand, a very dangerous job.

FRANKEN: It is an industry that has always seen struggle, often violent between miners and coal operators over safety and conditions. Critics charge that regulation has gotten relatively lax in recent years. And now, in the face of these two high-profile tragedies, the sides may be coming together, agreeing that there is need for improvement.

SEN. JAY ROCKEFELLER (D), WEST VIRGINIA: When people get mad, they are more likely to do something.

UNIDENTIFIED MALE: I hardly think that in today's climate, we can continue to allow these tragedies to occur without addressing the causes and how we can prevent it from occurring again in the future. That process is under way.

FRANKEN (on camera): But it is a long way between the promises made in the aftermath of tragedy and real reform.

Bob Franken, CNN, Capitol Hill.

(END VIDEOTAPE)

KAGAN: And now to privacy versus protecting the nation. This week, the Bush administration is launching an aggressive defense of its secret surveillance program aimed at tracking terrorist activity.

The White House says the use of warrantless wiretaps is vital to national security and will continue. Critics say it's intrusive, even illegal.

The deputy national intelligence director defended the eavesdropping program in a speech last hour in Washington, D.C. And President Bush takes the podium next hour in Kansas.

Our David Ensor is tracking it all from Washington.

David, good morning.

DAVID ENSOR, NATIONAL SECURITY CORRESPONDENT: Good morning, Daryn.

Well, the Bush administration sent a four-star general into the lion's den, so to speak, at the National Press Club today. General Michael Hayden, who was the director of the National Security Agency when President Bush first authorized this warrantless domestic surveillance, made a speech and answered questions, some of them rather blunt, rather hostile, questions like, "Is it open season on Arab-Americans?" Questions like, "Are you spying on anti-Bush groups in the United States?"

General Hayden said that this is a very targeted program, a limited one, and one that monitors only international calls, only those that have a reasonable basis to believe involve al Qaeda or one of its affiliates on one hand or the other of the telephone call.

Here's a sample of what he said.

(BEGIN VIDEO CLIP)

GEN. MICHAEL HAYDEN, DEPUTY NATIONAL INTELLIGENCE DIRECTOR: This isn't a drift net out there where we're soaking up everyone's communications. We are going after very specific communications that our professional judgment tells us we have reason to believe are those associated with people who want to kill Americans. That's what we're doing.

(END VIDEO CLIP)

ENSOR: Hayden said that in 2003, for example, there were 200 billion minutes of international telephone calls made by Americans to the rest of the world. He said there's just no way that the NSA could possibly monitor all those calls and stressed the targeted nature of this program.

Now, he declined to discuss whether or not the legal justification needs to improved, whether or not there ought to be a change to where Congress or a judge should have to approve these kinds of surveillance. He simply said that, with today's telecommunications revolution going on, the FISA court, the court that has so far been set up to permit certain kinds of surveillance in the United States, simply, in his view, that law that set that up wasn't adequate for the job and this presidentially-authorized program needed to be put in place to monitor any kind of al Qaeda communications.

He said that he thought that the 9/11 hijackers could have been stopped if this program can had been in place back then -- Daryn.

KAGAN: David Ensor, live from Washington, D.C.

Thank you.

And we will bring you live coverage of President Bush's speech on the war on terror. It is set to begin at 12:30 p.m. Eastern, 9:30 a.m. Pacific.

The war on terror is a worldwide fight, but there are some fronts that you rarely hear about. Ahead, our Barbara Starr joins us from Yemen with an exclusive look at some lesser-known al Qaeda threats.

Also, a prescription weight loss pill may soon be available over the counter. And that has some health experts worried. We'll explain.

But first, what Joe DiMaggio is to baseball, Wonder Bread is to white bread. Times are a changing. We'll tell you what's happening with the bread after this.

(COMMERCIAL BREAK)

KAGAN: Indianapolis-based ATA Airlines plans to add service to four cities and increase its flights to Hawaii. ATA is expected to emerge from bankruptcy late next month. Company officials say the airline will return to one of its core strengths, that is leisure travel. ATA was the nation's 10th biggest carrier when it filed for bankruptcy protection 15 months ago.

All right. Wonder Bread, did you grow up on it like I did? Did you love it for its soft, squishy texture? Well, take heart.

Two healthier whole wheat versions are said to be on the way. They're intended to look, taste and feel just like the original white bread.

Interstate Bakeries will make the new products with what's known as White whole wheat flour. The move is said to be part of the company's plan to emerge from bankruptcy. That one befuddles me, Susan. You have to have the white bread. You put the peanut butter, it sticks to the roof of your mouth, you know.

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Absolutely. Soft and squishy. I have never tasted a nut -- a seven-grain bread that tasted soft and squishy or spongy.

KAGAN: No. No.

LISOVICZ: But maybe -- I mean, Wonder Bread has the secret formula perhaps.

KAGAN: I guess so.

What about the markets? Do they have the secret formula today?

(STOCK MARKET REPORT)

KAGAN: Thank you, Susan.

And these kind of hazy pictures are from Topeka, Kansas. That's Air Force One. It's just landed there. President Bush on board. He's going to be speaking later today in Manhattan, Kansas, talking about the war on terror. And that's scheduled to take place about 12:30 p.m. Eastern. And you will see portions of that live here on CNN.

Right now we take a quick break.

(COMMERCIAL BREAK)

KAGAN: The U.S. claims success in winning the war against al Qaeda in Afghanistan. And that raises this question: If the terror network is being squeezed out of its base of operation, then where's is going?

Our Pentagon correspondent, Barbara Starr, has been following the military trail to see where the battle against terror leads us. And she joins us on the phone right now, live from Yemen.

Barbara, hello.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Hello to you, Daryn.

Well, it's evening here now in Yemen. And this is a country, of course, that very few Americans come to.

Most Americans remember Yemen as the place where al Qaeda attacked the Navy warship the USS Cole and killed so many U.S. service members. So we came to Yemen to see who was going on in the war on terror here, and we have had an extraordinary day, I must tell you.

We had an exclusive interview which we will bring to CNN, of course, with the interior minister of this country, the man responsible for internal security in this very strategic country in the war on terror. And he gave us quite an interesting piece of news.

The minister of interior now says to us that Yemenis who fought in Iraq, who fought in the insurgency and who were tied to the terrorist Abu Musab al-Zarqawi have indeed returned to Yemen and have been caught, apprehended, arrested, planning operations in this country. The most notorious one was several months ago. They rolled up one of these groups tied to Iraq and with Zarqawi that had indeed planned the assassination of the U.S. ambassador in this country. We confirmed that with the U.S. embassy.

So security in this country remains a real concern. But most of the security concerns, of course, are in the north.

There have been a lot of reports lately about Westerners being kidnapped in this country. That has been in the north. The government is very concerned about that. The president is cracking down, but again, the minister of interior told us today, in the north, the situation is different. It's not -- the security situation is not under the control of the government, and that they have insurgent groups in the north of Yemen that they do believe now have sympathies with Iran.

So a very, very complex situation here. The government trying to battle what they believe are remnants of al Qaeda, having mixed success. But perhaps the most interesting thing we have learned here is there is great hope that within months, the U.S. Navy will return to Yemen, that the U.S. Navy once again will make a port call in this country and be re-assured that the security situation has improved enough that the U.S. military can return here -- Daryn.

KAGAN: Meanwhile, Barbara, you've been able to file a piece recently on the road. Why don't you tell us about that.

STARR: Well, it has been -- it has been extraordinary. As we continue to travel with some members of the U.S. military through the Horn of Africa, we had another opportunity that we have already been able to file this piece.

A small U.S. military team, we were in Cibuti (ph), right in the Horn of Africa, and they took us to the border of Somalia. This is another place almost no Americans go.

The U.S. military, of course, has not entered Somalia since its withdrawal in 1994 after the very difficult situation it faced there, the "Black Hawk Down" incident. But we were taken to the border of Somalia, the U.S. military wanting us to see how rugged that terrain is and how much they believe that terrorists, al Qaeda is moving back into this area because of that very point, that the wars in Afghanistan, the war in Iraq, has basically shut down some of those areas as a refuge for al Qaeda. They believe that al Qaeda is moving in this direction.

And perhaps the most stunning piece of evidence was something very simple, a wristwatch that we were given with a picture of Osama bin Laden on it. These watches, hundreds perhaps, now being distributed in eastern Somalia, part of a recruiting campaign. Pictures of Osama bin Laden being distributed here in East Africa, trying to recruit people to join al Qaeda. And the U.S. military trying to lead humanitarian relief and aid projects here to try and improve the economic situation so people here in this very impoverished region will not find al Qaeda an alternative that they will embrace -- Daryn.

KAGAN: Fascinating stories. You are traveling to some very dangerous places, my friend. Please be careful as you make your way around.

Barbara Starr, live on the phone...

STARR: We are having...

KAGAN: Barbara Starr live from Yemen.

Thank you.

Well, do you think you're having a rough Monday morning? This is good news. You are not alone. It turns out today is the worst day of the year. And we actually have a scientific formula to prove that.

We will share the details just ahead.

Also ahead, a sad ending to the story of the whale. Remember we were watching the whale in the River Thames? We'll tell what you happened to the whale just ahead.

(COMMERCIAL BREAK)

KAGAN: Want to show you some live freeway camera pictures that we're getting. This from San Diego.

This is the 805. This is just north of Mission Valley. And the stuck traffic, this is headed south towards downtown San Diego.

Now, take a look at this sign here. It is a sign collapse coming down here. This is what is causing the backup.

Not sure if there's been any injuries due to the sign collapse. But about 8:30 in the morning in San Diego, so the height of rush hour.

But here, we can explain why this is happening. It turns out, according to a British psychologist, today is the worst day of the year.

You see, it's not just you or them who's having a bad day. January 23, he's come up with this formula. Here it is.

It's all mathematical muddiness, but the weather, he said, is bad in January; debt, your Christmas bills are due; time since Christmas; no holidays ahead; trying to quit that bad habit; most of us not keeping our resolutions. Once you add all that up and divide by motivation and need, well, boom, you have the worst day of the year.

But Jacqui, don't despair.

JAQUI JERAS, CNN METEOROLOGIST: I was saying I was having a good day until now. Now I'm depressed.

KAGAN: Well, it's only going to get better, because the best day of the year, according to this formula, is June 23. And that's only five months away.

JERAS: All right. June is a beautiful month.

KAGAN: It is.

JERAS: Lots of sunshine. It's close to the summer solstice.

KAGAN: Maybe that all adds into it as well.

JERAS I know.

KAGAN: What about weather? How is it in terms of a day, or a good day?

(WEATHER REPORT)

KAGAN: All right, Jacqui. Thank you.

Let's go ahead and check what's happening right "Now in the News."

Job cuts and shut doors. About an hour ago, Ford Motor Company announcing it will cut 25,000 to 30,000 jobs and close 14 plants in North America by 2012. Ford assembly plants in Atlanta, St. Louis and Michigan are among those stated -- slated to close. It's all part of Ford's restructuring plan designed to reverse big financial losses.

The White House today launches a major offensive in the war on terror. About an hour from now, President Bush will defend his domestic spying program during a speech at Kansas State University.

The program involves the secret surveillance of phones and e-mail without warrants. Some members of the Congress say that's illegal. Hearings are planned next month.

Meanwhile, Senate hearings into mine safety -- as we look at a live picture from Capitol Hill -- these hearings began just a few minutes ago on Capitol Hill. It comes in the wake of those two mining tragedies in West Virginia that killed 14 people. Safety equipment and safety regulations will be explored. The International Coal Group's CEO is expected those expected to testify.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com