Financial Accounting Blog

Monday, November 17, 2003

This article "Labor Sharpens its Pension Sword" appearing in Nov. 24, 2003 Business Week combines concepts relating to stocks and company control with pension funds and labor unions. It emphasizes the stockholder power of the unions via their pension funds.

The article cites how "...unions have begun using the power of their $350 billion in pension funds to become shareholder activists...." "Labor has become one of the country's strongest voices for corporate reform, demanding independent boards of directors, mutual fund accountability, and curbs on runaway CEO pay. But now unions are upping the ante, using their pension holdings to pressure companies on bread-and-butter labor issues as well. Combining old fashioned tactics such as picketing with their clout in the boardroom, unions are attacking employers on everything from health-care benefits to job outsourcing."