SINthysist
Rural Racist Homophobe
- Joined
- Nov 29, 2001
- Posts
- 11,940
Thursday, Nov. 21, 2002
'Look for the Union Label - and Run'
Big Labor is furious that investment bank Morgan Stanley has advised clients to avoid heavily unionized industries.
"Look for the union label - and run the other way," the bank's analysts warned U.S. clients last week, the British newspaper the Guardian reported today.
Describing pension plans as "toxic" for shareholders, the analysts note that unionized companies are likelier to provide costly benefits.
John Sweeney, president of AFL-CIO, the Democrats' favorite tool, retorted that Morgan Stanley appeared to be "attacking the fundamental structures of fairness in our economy."
"It is hard to resist the conclusion that the same biases about what constitutes successful employee relations underlie both your analysts' enthusiasm for Enron, WorldCom and Tyco, and their hostility to union workers and their employers."
But the note points out, "Rigidity in labor costs, processes and pension requirements, while perhaps beneficial to employees, may prove toxic to shareholders."
Does this mean you shouldn't invest Big Government and Big Education?
'Look for the Union Label - and Run'
Big Labor is furious that investment bank Morgan Stanley has advised clients to avoid heavily unionized industries.
"Look for the union label - and run the other way," the bank's analysts warned U.S. clients last week, the British newspaper the Guardian reported today.
Describing pension plans as "toxic" for shareholders, the analysts note that unionized companies are likelier to provide costly benefits.
John Sweeney, president of AFL-CIO, the Democrats' favorite tool, retorted that Morgan Stanley appeared to be "attacking the fundamental structures of fairness in our economy."
"It is hard to resist the conclusion that the same biases about what constitutes successful employee relations underlie both your analysts' enthusiasm for Enron, WorldCom and Tyco, and their hostility to union workers and their employers."
But the note points out, "Rigidity in labor costs, processes and pension requirements, while perhaps beneficial to employees, may prove toxic to shareholders."
Does this mean you shouldn't invest Big Government and Big Education?
