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HOMESTEAD: Fwd: COGALL: US Airliine Industry seeks Government Bailout - Employees should get stock in return.
The attached suggestion is right on target. This is the time to restructure
these airlines so that the employees gain an ownership share. Of course,
United and Southwest are already partly or wholely employee ownered, although
United could improve by practicing Value-Based Management. For more
information on this, see www.cesj.org.
Michael Bindner
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Dear COG All:
Page 1,
column 1 of the Wall Street Journal dated 9/17/01 says the airline
"industry is publicly pleading and privately lobbying for a
Congressional bailout" from the $1 billion loss it incurred due to
the terrorist attacks that closed the airports and greatly diminished air
travel.
This is an
understandable plea and perhaps one that Congress should respond to
positively. However, if so, it immediately raises the following
question. If Congress uses taxpayer money to help a private company, what
upside return should taxpayers receive? I think the answer is that if the
taxpayers participate in a company's pain, they must also participate in
its gain by receiving equity. The following link is to the Fair Exchange
Proposal (also called "Stock or Equity Quid Pro Quo") in the
COG paper Ownership for
Everyone.http://capitalownership.org/PapersMay2001/Homestead.htm
.If you are interested in pursuing this idea, please join the COG
Homestead by registering at
http://capitalownership.org/register.html
If you are already registered, please send your comments to
homestead@cog.kent.edu. (You cannot reach
others by replying to this email - as the COGall list is not, itself
a discussion group.)
Congress
insisted on the employees receiving stock valued at approximately a 15%
interest in Chrysler, when they provided a bailout to help that company
avoid bankruptcy under the Chrysler Loan Guarantee Act of 1979. (See D.
Olson, 1982 Wis. L.R. 729 at 775-777
http://www.esoplaw.com/WisLR%20complete.htm
) Had the employees retained that ownership stake, there might have been a very different outcome to Daimler's recent ill-fated purchase of Chrysler.
I look forward to your thoughts and proposed next steps.
Best regards,
Deb Olson
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