Delta Pilots Get Options Worth 19% of Company

In return for wage and other concession, pilots at Delta will get stock options worth as much as 19% of the carrier, plus a non-voting seat on the board. Delta joins Southwest in offering options to all its pilots.

Business Week Lauds United, Questions ESOP Growth

In a March 14 cover story, Business Week lauded the progress United Airlines has made as a participative, employee-owned company. The article pointed out how work teams throughout the company have saved huge amounts of money.

Administration to Oppose Section 133 Changes

The Budget Reconciliation Act passed by Congress contains a provision to eliminate section 133 of the Internal Revenue Code. Section 133 allows lenders to exclude 50% of the interest income they receive on loans to majority ESOPs passing through full voting rights.

Employee-Owned Journal Communications Rejects Takeover Bid

Journal Communications is one of the largest employee-owned firms, and the largest in the communications industry. Majority employee-owned for over 50 years, it employs about 6,000 people. It publishes the Milwaukee Journal-Sentinel and has several subsidiaries in various media fields.

Section 133 Update

The ability of lenders to exclude 50% of the interest income they receive on ESOP loans remains up in the air. When Congress passed the Budget Reconciliation Act, this provision was eliminated, but President Clinton vetoed the bill and it remains in much-discussed limbo.

Employees Buy Major Canadian Trucking Company

The 2,700 employees of Canadian Pacific Express have purchased the company from Canadian Pacific Corporation and changed its name to Interlink Freight Systems. The company had been a subsidiary of Canadian Pacific.