Southern California Gas Co. Is Proud of Stock Ownership Plan for Workers

Times labor columnist Harry Bernstein misled readers last Tuesday in his article concerning a union-backed, former Southern California Gas Company employee’s attempt to obtain a seat on the board of directors of Pacific Enterprises, the gas company’s parent company.

To begin with, the company does not feel “as if they created a monster” when they set up a stock ownership plan for the gas company’s employees. We encourage employees to participate in the plan, and we match a part of their contributions as an incentive for their participation. (Our total match in 1988 was $8.5 million.) This support and encouragement demonstrates a strong commitment to the concept of employee stock ownership.

Elsewhere in his column, Bernstein says Pacific Enterprises has refused to give the union the names and addresses of shareholders. This is absolutely untrue.

Pacific Enterprises has offered to make the list of all shareholders of record available to the union candidate to inspect and copy. He has not done so. It should be noted that this list would not include employee-shareholders since their shares are listed in the name of the plan’s trustee, First Interstate Bank. However, the candidate can mail materials to employees who own shares through the stock ownership plan whenever he wants simply by providing the plan’s trustee with his materials and a check to cover mailing costs. Again, he has not done so. Instead, he is trying to obtain a list of names, addresses and share holdings of employees in the plan so that he and the union’s representatives can solicit employees face to face. Pacific Enterprises believes the confidentiality of this information must be respected.

As a final note, Bernstein is correct that labor relations at the gas company have been and remain harmonious. This strong relationship results from mutual respect and support for collective bargaining. Nevertheless, I also believe that the candidate is less qualified than other nominees for the board.

PAUL A. MILLER

Chairman and CEO,

Pacific Enterprises