August 16, 2002
United, to the unemployment line?
This Slate article discussed the confusing state of United Airlines, which seems poised to be the next bankruptcy in the airline industry.
What makes United's situation so interesting is that the company is majority-owned by the employees! While I'd have to think that union members would rather give wage concessions then see the company go out of business in any case, the United employees not only stand to lose their wages but also see their stock holdings drop to nothing as well. And yet the classic labor-management battle continues.
My only thought is that the unions think the government wouldn't possibly let United fail. I sense this might be true, given the company's size and the fact they two of their planes were used in the Sep. 11 attacks.
Posted by blipsman at August 16, 2002 12:03 PM