"The company was profitable for most of the years following its employee buyout in 1975 when its 500 workers adopted their ESOP and saved their jobs. Arguably, without South Bend Lathe we may never have seen the successful ESOP buyouts at Weirton Steel, Avis Rent-A-Car, and United Airlines. This model, however, also shows what can go wrong as long as management, unions, and workers cling to 'wage-system' thinking."  MORE >>