SALE OF THE CENTURY
DEEP INSIDE ME THE BRAKES ARE SQUEALING
Just before tomorrows bankruptcy court hearing and a hopeful conclusion to recent labor turmoil there is news that there are wolves at the door of United Airlines. The news came last week that there are several “investor consortiums” interested in United. More interesting is that former CEO Gerald Greenwald leads one of the consortiums. Greenwald was responsible for leading United into employee ownership (ESOP).
United is no longer employee owned since their stock was sold while it was tanking – a big loss for United employees. Not only did they lose a great amount of money, they also lost the little power they had as majority holders. ESOP (Employee Stock Ownership Program) came about in 1994 when United was in financial turmoil and they had to ask their employees for cuts. The result of those cuts was “ownership” (and I stress the quotes) of the company. United employees took severe cuts to save the airline and took ownership to have a vested interest in their company.
Senior employees at United have taken their knocks and then some. They have seen CEOs who had no long term interest in United come and go but profit none the less while they have taken one concession after another. Each CEO has asked employees for the same two things, loyalty and givebacks, when they themselves gave neither.
Now Gerald Greenwald stands outside the door baying at the full moon. If he couldn’t succeed during his first tenure as CEO how could he and others think he could do it this time and under much harsher circumstances? Or, would he be buying to liquidate?
When the hammer comes down will you still be around?
Just before tomorrows bankruptcy court hearing and a hopeful conclusion to recent labor turmoil there is news that there are wolves at the door of United Airlines. The news came last week that there are several “investor consortiums” interested in United. More interesting is that former CEO Gerald Greenwald leads one of the consortiums. Greenwald was responsible for leading United into employee ownership (ESOP).
United is no longer employee owned since their stock was sold while it was tanking – a big loss for United employees. Not only did they lose a great amount of money, they also lost the little power they had as majority holders. ESOP (Employee Stock Ownership Program) came about in 1994 when United was in financial turmoil and they had to ask their employees for cuts. The result of those cuts was “ownership” (and I stress the quotes) of the company. United employees took severe cuts to save the airline and took ownership to have a vested interest in their company.
Senior employees at United have taken their knocks and then some. They have seen CEOs who had no long term interest in United come and go but profit none the less while they have taken one concession after another. Each CEO has asked employees for the same two things, loyalty and givebacks, when they themselves gave neither.
Now Gerald Greenwald stands outside the door baying at the full moon. If he couldn’t succeed during his first tenure as CEO how could he and others think he could do it this time and under much harsher circumstances? Or, would he be buying to liquidate?
When the hammer comes down will you still be around?
posted by William Hammond | 11:31 PM
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