Leverage in Strike Limited

The University could do little to end a bitter labor dispute at a coal mining company by selling its stock in the corporation, investment experts say, but Harvard Corporation member Robert G. Stone '45 could persuade the company to sit down at the bargaining table.

Financial analysts said that Stone, who sits on the coal mining company's 13-member board of directors, could be helpful in settling the six-month dispute.

"If a sympathetic board member were to convince the others, it could sway a decision," said George G.C. Parker, a professor of management at the Stanford Graduate School of Business. "In a simple majority vote, seven would carry the day."

Stone said in a brief interview yesterday that "we're trying very hard to get Pittston to negotiate." He refused further comment.

Pittston officials also refused comment on the strike and Harvard's ties to the company.

In the wake of the strike, the Harvard Union of Clerical and Technical Workers (HUCTW), in support of the Pittston union, have called on Stone and Harvard to take an active role in resolving the conflict. HUCTW has held two rallies at Harvard in support of their position.

The unions said that the best solution would be for Harvard to maintain ties to the firm and try to help the workers gain a fair contract.

"We would rather Harvard vote with its voice as a shareholder," he said.

But if Harvard will not use its leverage to influence the company directly, Kenneth S. Zinn, a spokesperson for the United Mine Workers (UMW), said UMW would prefer that Harvard at least make a public statement by divesting of its 311,000 shares of Pittston.

"Any inaction certainly indicates they are supporting the company," said UMW spokesperson Tim Baker.

Harvard owns approximately one percent of the company and is the 19th largest stockholder, according to UMW. Financial experts said they doubted that Harvard would have much influence on company policy by selling its holdings.

"One percent is a healthy amount, and if theywanted to take dramatic action, they couldannounce that Harvard was selling the stockbecause of dissatisfaction with the company," saida spokesperson for Merrill Lynch. "But I don'tknow if there would be any changes."

"No significant influence flows from their roleas a stockholder," said a spokesperson for IDSFinancial Services. "Much more flows from theprestige of the name."

The strike began six months ago when Pittstonrefused to extend the union's contract. Since thenmanagement has denied health benefits to 1500retirees, disabled workers and widows whilerejecting several union offers of contractextensions, according to UMW.

Company officials have said the measures werenecessary to keep costs down, but the unions havecalled them unethical and have demanded thatHarvard help end the strike.

"Harvard has a large responsibility and wouldlike to be perceived as a liberal institution,"Baker said. "If they would like to be perceivedthis way, they have a responsibility to theworking man.