USAir, Pilots Agree on Stock for Equity Swap

The pilots union and USAir have agreed on a transaction that would involve substantial concessions in pay and work rules by the pilots in return for board representation and stock. The proposal would only become effective if other labor groups at USAir reach a settlement.

Employees Now Own 5.8% of All Corporate Equity

The NCEO now estimates that employees own the rights to 5.8% of the corporate stock in the U.S. The estimates are based on Form 5500 filings for ESOPs and 401(k) plans and an estimate of the value of stock options granted broadly to employees.

Progress in Poland

According to Karol Szadurski, head of UNIA, the Polish employee ownership support organization, there are now over 1,000 companies in Poland with broad employee ownership. Karol's fax to us did not indicate what percentage of these were majority employee owned.

New Census Bureau Study Shows Participation Programs Limited

The rhetoric about employee participation appears to have far outraced the reality. In a survey of plant and site managers at companies with more than 20 employees, only 18% report even having experimented with employee work teams.

Manitoba Fund Creates Canadian ESOP

In a few Canadian provinces, employees are able to get both provincial and federal tax credits for buying employer stock. They can also get credits for investing in labor venture capital funds that invest in local companies.

Starbucks One of Five Business Enterprise Trust Winners

For the third consecutive year, an employee ownership company and NCEO member has been named one of the five recipients of the Business Enterprise Trust Award. The award recognizes excellence in balancing free enterprise objectives with socially responsible actions.

Legal Tip: Remember Attribution Rules

In determining whether an ESOP allocation is allowed, don't forget to consider attribution rules. Spouses and dependent children, and possibly others, can have their income attributed to another individual.