Pension Fund Trustees Taking Aim at Safeway
State and municipal pension fund officials announced that they would lead a battle against Safeway for management failures that have resulted in their stock falling 60 percent in the last five years. It is part of a campaign by the officials to bring what they call a fundamental change to corporate America; making companies responsible for the loss of employees pensions due to poor management. Many see this movement as a backlash to the recent Enron and WorldCom scandals, a fight against unchecked power and corporate abuse. Critics believe the activism is being driven by organized labor, as a number of pension trustees are elected by unionized public-service workers who benefit from the fund.
See Mary Williams Walsh and Jonathan D. Glater, The New York Times, March 25, 2004