UNITED [UAL] WE STAND! WITH PRIVATE PENSIONS, WE PERISH! ©

The day breaks, and so too does the news; United Airlines is close to bankruptcy. In an attempt to survive, this private company turns to a federal government agency for assistance. United is asking Pension Benefit Guarantee Corporation,/a> to fund its retirement program. This once strong corporation is failing; their future looks grim. This seems to be the start of a trend for big businesses today. Others recently announced their struggles. Corporations that led the country are grappling for business. What we once relied upon, trusted to be true, is no longer. Investing in private industry is not the certain path that many profess it to be. The tide is turning and who among us can accurately predict the future?

History can only guide us. Let us look at the history of United Airlines. Possibly there are lessons to learn.

Years ago, in 1993, United Airlines board of directors approved an innovative proposal. The plan would merge the missions of management, pilots, machinists, and flight attendants. These corporate giants offered their [then] 54,000 employees partial ownership in the company. The thinking was that this would assuage the financial struggles that the business was facing. Many believed that employee-ownership would be an incentive for United Airlines workers. Service would improve; morale would be better. Workers would be happy and pleased to pleasure their customers. Clientele would return again and again. All would result in greater profits, more monies for shareholders and employees alike. United Airlines would be united in its vision.

Aesop, the most famous fabulist of all times stated the concept of a united force in his fables. In the 6th century he offered, “Union gives strength.” President Lincoln repeated this idea in the 1860’s; he posed “United we stand.” The strength of working together for the greater-good, is the premise of our Social Security program, a plan initiated during the Franklin Delanor Roosevelt presidency. Currently there are some 45 million persons receiving Social Security benefits. Before Social Security, people such as these, under similar circumstances, lived in poverty. Yes, unity was the answer.

As of July 12, 1994, portions of employee salaries and benefits would be paid in United Airlines stock. This groundbreaking action helped to create the largest majority employee-owned company in the world. Workers and management were united. United, they stood solid. Life looked good. However, it was not. Why not? What happened? Why was United not truly a united force?

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