United Airlines Sucks

So, United Airlines decided to STIFF employees by defaulting on the pension plan. What a wonderful company. Top level managers are obviously trying to save whatever stock value they can, so that when the company finally dies they can sell the assets for the full value and still make something. Who cares if the employees who worked there for years get screwed as a result.

This is a prime example of WHY ADAM SMITH WAS WRONG. In case you do not know, Adam Smith first wrote about the idea that government should have a "hands off" policy towards business (see The Wealth Of Nations). This might have been find and dandy in Smith's time when most people were farmers, but it was not long before the truth came out.

During the period of the industrial revolution, a few men became very VERY rich. Unimaginably rich. This is the period of the Robber Barons. People, for the first time, did not have to farm. They could (in theory) work at a factory, make a wage, then buy food from the farmer. So, what went wrong.

Greed. The Robber Barons could never have enough money. The goal then was to become a monopoly, so that you had no competition. Factories were not made to be safe, they were made to maximize profit for the owner. Wages were kept low so that workers would depend on the meager pay to live. Few people had very much money to "save", investing for retirement was only for the rich.

So the government stepped in. The hands off policy failed, it led to a system of monopolies, low wages, unsafe conditions, and a few very rich men. Monopolies were busted up, labor unions formed, workers got things like "weekends" and factories that had working fire escapes, and wages went up. The few rich men were still very rich, but their monopolies were busted up. America became better as a result.

But all this is forgotten by too many. More and more politicians of ONE party keep talking that "hands off" is the best policy, that government should not get involved with business. We already tried that and it was not good.

So how does this relate to the United Pension Fund? The company executives decided to let the fund default, because it will make them (top management) more money when the airline is sold off. The quasi-government fund that will take over only has to pay 2/3 of the value of each pension. So people who worked hard, followed the rules, and paid into the system instantly loose 33% of their money. That is going to hurt a lot of people.

If the "hands off" theory were in place, the pension would have ZERO value. Many retired people would be forced into poverty overnight. They would have to sell everything they own just to eat. This is just not right.

Adam Smith was wrong. Left alone, big business would rather screw employees than treat them fairly. Think about this next time you hear some blow hard politician on TV saying otherwise. Read some history books. Talk to old people about why labor unions were formed (hurry up, soon the people that are responsible for the labor movement today will die of old age).

And for the love of god - DO NOT FLY UNITED! Do not support evil corporations that would screw over retired employees. And when the airline dies, write to your elected clowns and tell them they should FORCE THE AIRLINE TO SELL OFF ENOUGH ASSETS TO FULLY FUND THE PENSION PLAN! After all, it is the right thing to do. Most people who paid into the pension worked very hard for many years. They deserve to enjoy as much of their retirement as possible, before illness and old age does its thing to them. If this means some top managers do not get a bonus, I will not cry too hard.