| A day to reflect on the accomplishments of | | | | Investments magazine estimated that General |
| working people: That's been the proud tradition | | | | Motor's pension fund had assets of $82.5 billion |
| since the first, unofficial, Labor Day back in | | | | and the pension fund of the Western Conference |
| 1882.But, one of labor's greatest accomplishments | | | | Teamsters had assets of $22.6 billion, at |
| has gone largely unrecognized. Since the end of | | | | September 30, 2001.This ownership of big |
| World War II, working people have bought up a | | | | business by working people is the result of |
| huge chunk of big business. They now own a | | | | contributions to pension funds, mutual funds, and |
| piece of just about everything in business, from | | | | life insurance policies with a savings |
| multinational corporations to small companies that | | | | component.What does all this mean? Well, for |
| build mini-malls in their neighborhoods.It may be | | | | starters, perhaps an end of complaints about the |
| the greatest economic transformation since the | | | | profits of corporations. After all, most of those |
| Industrial Revolution; management guru Peter | | | | profits go toward the retirement incomes of |
| Drucker calls it "The Pension Fund Revolution."To | | | | working people.More complicated, though, is the |
| get a sense of the transformation, consider this: | | | | relationship between working people who own a |
| At the end of 2001, America's 242 billionaires had | | | | big company and other working people employed |
| assets totalling about $800 billion. That's a sizable | | | | by it. How to share corporate profits -- through |
| amount, certainly, but working people had assets | | | | continuing employment and higher wages, or |
| of $11.8 trillion in pension and mutual funds. That's | | | | through higher returns to shareholders -- remains |
| almost 15 times as much as the billionaires.Most | | | | a difficult issue. Especially for those working people |
| working people contribute only modest amounts | | | | who lose their jobs.On the other side of the coin, |
| to their retirement plans, but there are simply so | | | | working people have bought enough stocks and |
| many of us that our collective nest egg grew | | | | shares to become the bosses of the bosses. |
| very quickly. If you're still not sure, try this on | | | | Some pension funds have begun making that |
| your calculator: Multiply a contribution of $1,000 | | | | clear; CalPERS, the California Public Employees' |
| per year by one million working people. Answer: | | | | Retirement System, has led the way in telling |
| $1 billion dollars per year. Now note there are | | | | Chief Executive Officers (CEOs) and boards of |
| hundreds of millions of working people here and in | | | | directors that they'd better manage effectively. |
| other countries. And we're contributing new | | | | And, CEOs and directors listen; after all CalPERS |
| money every year.Even a relatively small number | | | | runs the country's biggest pension fund, with |
| of working people can build a big fund. For | | | | assets of more than $130 billion.One other thing: if |
| example, the New York State Common | | | | you're a working person, you're a consumer, as |
| Retirement Fund, with 944,000 members in or | | | | well as an owner and employee. When you go |
| retired from state public services, had assets of | | | | shopping, there's a chance you'll buy from a |
| $112 billion at the end of March last year. | | | | business owned by yourself, your friends, or your |
| According to the Fund's annual report for 2002, | | | | neighbors. What's more, the clerks who take your |
| about $76.6 billion of that total was invested in | | | | credit card with smiles may work for you. Or, |
| companies. The remainder, about $35 billion, was | | | | maybe the clerks own the company for which |
| in bonds, mortgages, and other types of | | | | you work. Smile at them, too, just to be on the |
| loans.Look at the private sector and unions, too. | | | | safe side! |
| To cite just a couple of examples, Pensions & | | | | |