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News from the Alaska/Horizon ESOP/CSOP



 The Horizon/Alaska Customer/Employee Association Inc.'s ESOP and CSOP Organizational Tidbit of the Day:  One of the positive outcomes of the monumental Enron debacle is acceleration of needed reforms in corporate governance. (Desperately needed at the AAG). Unfortunately, some in the federal government are contemplating changing existing ESOP legislation to drastically reduce the amount of employer stock employees are allowed to hold in their 401(k)s. (Enron employees lost around $1billion on their stock held through their 401(k) retirement programs.)

This would be a mistake and set back the burgeoning ESOP/CSOP movement. What's needed is broader sharing of corporate power by employee and customers to oversee potential abuses by greedy management teams and boards, which is what appears to have happened at Enron.

If employees and customers can't trust ourselves (we are the corporation) enough to hold our stock as a critical investment in our future, why the heck are we working here anyway? You want strangers to hold our stock? You want to make it easier for cross 'n skull boners to accomplish hostile takeovers of our airlines so we all lose our jobs?

Employees partnered with our customers need to hold more AAG stock. (HACECA supports broad stock buying plans for both employees and customers.) But as we stakeholder/shareholders take on more risk, we then deserve an appropriate, qualified level of representation on the AAG's board to oversee and help manage our investment.

It's a matter of sharing--a basic tenet of democracy. Unfortunately, to date, management teams of both Alaska and Horizon and the AAG Board have shown zero willingness to even talk about these necessary reforms. Hopefully in 2002, our unions, employees and customers can organize sufficiently to enlighten the closed minds of our management--Steve Nieman
 
The Horizon/Alaska Customer/Employee Co-Ownership Assn. (HACECA) Inc's website is www.eahsop.org