Signals
By EDITOR John Nielsen REPORTER H. John Steinbreder

(FORTUNE Magazine) – The Justice Department came out against the proposed merger of Northwest (see Profile) and Republic Airlines. Among its objections in a 29-page commentary: both carriers are based in Minneapolis-St. Paul, and between them they control 51 of the 63 gates at the Minneapolis airport. For the first time since the 1984 breakup of the Bell System, AT&T began negotiating new labor contracts with its unions. The talks promise to be acrimonious. AT&T is in the midst of cutbacks and layoffs in a recently deregulated market; union leaders are seeking guarantees of job security.