533,000 jobs cut in November

[tech2101]

Actually Herb Kelleher has spoken at length on this subject. Here is quote from a lengthy interview he did for a very conservative publication called "Strategy & Business".

To Mr. Kelleher the answer was no mystery. According to Mr. Kelleher,


“You put your employees first. If you truly treat your employees with respect, they will treat your customers well, your customers will come back, and that’s what makes your shareholders happy. So there is no constituency at war with any other constituency. Ultimately, it’s shareholder value that you’re producing”.

Herb knows a thing or two about building a money making machine with well paid employees, happy customers and shareholders.

And the most unionized U.S. based airline in business...

 

[southwind]

Actually Herb Kelleher has spoken at length on this subject. Here is quote from a lengthy interview he did for a very conservative publication called "Strategy & Business".

To Mr. Kelleher the answer was no mystery. According to Mr. Kelleher,

“You put your employees first. If you truly treat your employees with respect, they will treat your customers well, your customers will come back, and that’s what makes your shareholders happy. So there is no constituency at war with any other constituency. Ultimately, it’s shareholder value that you’re producingâ€￾.

Herb knows a thing or two about building a money making machine with well paid employees, happy customers and shareholders.

I totally agree with the keep your employess happy and your customers will be happy mind-set.

But in the end, companys are in business to make money for the shareholders.............period.
They didn't start the company just to give people jobs.

And again I will state that bad management and Big Brother are the biggest causes of most companys failing and....................Unions that signed contracts 2 or 3 years ago, that in todays market are un-substainable and are un-willing to budge from yester-years contract , even if it means the possible demise of their lively-hood !

And as far as CEO pay , guess you better take that one up with your local Board of Directors !

 

[KCFlyer]

Yes.............We all know bad, "EVIL MANAGEMENT" and "BIG GOVERNMENT" help land the U.S. auto makers where they are and the "UAW W/ UN-REALISTIC DEMANDS" has nothing to do with their demise.............................Gimme a break ! :down:

Southwind...doncha figure that if you are going to pay a guy $20 million a year and part of his job is to negotiate union contracts that they MIGHT spend a little time negotiating with an eye on a downturn in the economy? Instead, it appears that they negotiate with 'times are good...where do I sign". Then....when times are bad, the union contracts are to blame, but their own (very lucrative) contracts are sacred. Does business school teach ANYTHING about LEADERSHIP these days? I mean....it's always the "evil greedy unions" that are the cause of the problems. Don't you think that if management contracts were renegotiated AT THE SAME TIME labor contracts are being renegotiated that there might be a little more willingness to work together?

If the times are good, then the company can hold firm on their offer and withstand a strike. But these overpaid bozos (managment) just sign on the dotted line because a strike might impact their annual bonus. Here's my suggestion for automakers...let the 20 million dollar wunderkind take a 19.5 million dollar cut in pay, eliminate bonuses, and cut their own medical and retirement with the same percentage that they want to cut labors. If they aren't sure how they can get by on "only" $500,000 per year, have them give me a call a 913-555-2463 and I can give them a few pointers, such as eating mac and cheese for dinner and opting for the all you can eat family buffets to keep food costs down, and setting their thermostats down to 65 degress to cut down on the heating bills.

 

[tech2101]

Unions that signed contracts 2 or 3 years ago, that in todays market are un-substainable and are un-willing to budge from yester-years contract , even if it means the possible demise of their lively-hood !

So when management agrees to terms in a contract for 5 years, they were only considering the first two...or only if profits continued...

It is called long-term planning. I am guessing you have yet to take your first class in business or economics.

Let me try it this way:

The mortgage company offers you a 5% loan, and you agree to it, and your payments are $700/month...The mortgage company falls on hard times and calls you and says, "Hey, we didn't think things were going to get this tough, so that 5% loan is going to have to be raised to 7%, and your payments are going up to $900/month." Would you be un-willing to budge from that "yester-years contract"?

Please continue posting.

 

[Cosworth]

I agree with your example in so far as responsibility is concerned. Labor and management are short sighted. How ever, your example does not address the fact that as far as the auto companies are concerned, the workers and the company are tied to each other. If they do not work together, there is the likely hood that they will all suffer or that far more will suffer should they not decided to work together.

 

[delldude]

It is called long-term planning. I am guessing you have yet to take your first class in business or economics.

I met several LTP people at US Air while there....mostly over giveback talks.They didn't discuss anything long term but would hint at what should/could be the path taken.

Curious though...when LTP...I take it they lay out multiple scenarios,right?I'd think you'd have to have an action plan for several scenarios including unpleasant ones?

Just curious.

 

[dapoes]

I mean....it's always the "evil greedy unions" that are the cause of the problems.

Well stuff like this and this and this and finally this only adds fuel to the fire:

 

[delldude]

Well stuff like this and this and this and finally this only adds fuel to the fire:

You could probably throw Ken Lay types into that mix too.

 

[tech2101]

Curious though...when LTP...I take it they lay out multiple scenarios,right?I'd think you'd have to have an action plan for several scenarios including unpleasant ones?

Just curious.

Yes, you should have several scenarios planned.

 

[UAL_TECH]

Mass Layoffs by Profitable Firms a 'Horrible Act,'

Excerpt:
"

The idea of a company that's earning money, not losing money, that's not, let's say, 'industrially endangered,' to have just cutbacks so they can earn another $12 million or $20 million or $40 million in a year where no one's counting is really a horrible act when you think about it on every level," said Diller, who's been known to lay off workers from time to time. "First of all, it's certainly not necessary. It's doing it at the worst time. It's throwing people out to a larger, what is inevitably a larger, unemployment heap for frankly no good reason."

B) xUT