Apr 30, 2007
There’s some play being given to a plan for Chrysler workers to buy up Chrysler through an employee stock ownership plan or ESOP, in exchange for concessions.
No workers have ever made or kept money on an ESOP. Look at what happened to workers at United Airlines. It’s a way for companies to put their hands on worker’s pension money, not to mention your 401(k) money. Workers get stock, with no say, and get all the debt. And if and when the company decides to go bankrupt, which many companies with ESOPs have done, workers can lose their money and their pensions, except for the pittance they get from the Pension Benefit Guaranty Corp.
Maybe today this plan is being sent out like a test balloon to see workers’ reactions.
So workers need to react, and the reaction should be – NEVER!