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Companies Decide: Profits or People

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Omaha, NE.- Not all companies laying people off are losing money, some are adding to their bottom line.

Take for instance Union Pacific. Despite the economy in 2008 the railroad's bottom line was up 21%. At the same time the company laid off 3,150 workers across the country.

Creighton University economist, Ernie Goss tells Action 3 News he sympathizes with the workers, but adds "These are stockholder owned companies and they have a responsibility to at least increase shareholder wealth."

Nebraska Senator Ben Nelson tells us he's frustrated watching some companies increase their bottom line while laying workers off. "Well nobody likes to see it done that way."

Governor Dave Heineman tells us there's little or nothing he can do because, "It's the private sector, the markets."

Goss adds, "The company that doesn't keep its eye on the bottom line will not be in business, and then none of the workers have a job."

Meanwhile workers at Omaha's TD Ameritrade are in limbo.

Profits are down, but the company made nearly 185 million dollars, during the last 3 months of 2008.

Still some 190 lay-offs may be coming.

We've asked Union Pacific and TD Ameritrade to talk about all this, but so far no one's commenting.

That while many workers, especially those losing their jobs, wonder how much company profit is too much.

Reported by Joe Jordan, joe@action3news.com

 

Carol Wang

Craig Nigrelli

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