How Can Management Sleep At Night?

[usjacket]

I am sad for our airline and sad for our country when rewarding corporate executives obscene amounts of compensation (at the same time loyal employees are laid off, relocated, and their pay, benefits, and jobs eliminated) has become the norm! I guess Hardvard teaches How To Sleep At Night 101. They teach it well!

 

[PITbull]

I don't even want to start with that all over again. I have exhausted all of the English language with regard to the "elite" employees who have positioned our company to become INSTANT millionaires once the stock starts trading.

The PIT President happen to run into the CEO and they had a short dialogue with the Pittsburgh Hub status and th 5% return. He stated that we should feel guilty as labor for demanding this back, and that this company needs to worry about paying back the ATSB loan. He said we cannot afford to default on this.

Can you believe it? And then I look at their stock alloation." Unfriggen believable", as mrplanes would say.

 

[RowUnderDCA]

.... I am totally oppossed to the end result of creating a ruling class that views intself as untouchable and entitled to all they can grab with no obligation to the society who rewarded their efforts so handsomely.

PBob-

I agree, but I think we're well on our way to creating two separate classes

an under-taxed wealth class and an over-taxed labor class.

It's all about balance for me, not ideology.

 

[PITbull]

Row,

Thanks for saying that. Its all about creating a "balance".

The question arises who is responsible for overseeing that?

 

[zonecontroller]

It is not my point to defend the unions representing the workers on US Airways property, but I do think this is case in point about dealing with corporate America today.
A few months ago Springs made an offer of around $250 million for the purchase of Pillowtex. Springs covets the Pillowtex brands, but many of the Pillowtex plants and distribution centers would have been idled due to duplication and excess capacity. The union “UNITE” raised holy hell about the Springs offer and eventually chased away what was most likely, the best bidder and bid.
Springs probably would have kept three to four plants operating and would have paid much more than the liquidators ($56 million) for the company. A tragic situation for all. A Springs purchase probably would have saved jobs, paid the creditors and banks more and made Springs stronger -- all things that would have been good for this area.
I guess UNITE means we all lose our jobs together -- that is, except for the union leadership, who are still being paid with dues paid by displaced workers.
Pillowtex filed for bankruptcy July 30 and erased 7,650 jobs, workers were left wondering how to pay for such basic needs as rent and groceries.
http://www.charlotte.com/mld/observer/news/6528267.htm
B)

 

[PITbull]

Hmmm, sounds like where many USAirways employees are with jobs.

You stated Zone, many "probablies".

 

[PITbull]

Zone,

Couldn't go back in my thread to add something else.

Seems to me according to the article all took part in the demise of the co. Politicians really didn't help, unions or a management team that didn't have the incentive to pull the company out of its mess as these "elite" employees could parachute out.

Labor can't always be the only group of employees who need to resusitate a company every time execs experiment with decisions and screw up. However, its always labor that gets the worse end of a short stick. Some companies are just not worth saving. And to keep putting bandaids on to limp the company along is not a good long term solution. If it is impossible to get rid of the management who runs the company,sometimes, there isn't any solutions left and sadly its time to go out of business.

 

[Seatacus]

PBob-

I agree, but I think we're well on our way to creating two separate classes

an under-taxed wealth class and an over-taxed labor class.

It's all about balance for me, not ideology.

For clarification... it's the wealthy who pay most of the taxes...

 

[TomBascom]

... INSTANT millionaires once the stock starts trading.

Is that actually true? Or is the stock restricted for some period of time? There's also the matter of liquidity -- is there even a market for it at a millionaire price point?

 

[PITbull]

They ar looking for an "Exchange". Once it starts to trade they have the propensity to become instant millionairs in over 1 year service. When we receive our shares (which we haven't yet) we too can trade them. I have approx 80 shares, which is 50% of my distribution.

 

[TomBascom]

They ar looking for an "Exchange". Once it starts to trade they have the propensity to become instant millionairs in over 1 year service. When we receive our shares (which we haven't yet) we too can trade them. I have approx 80 shares, which is 50% of my distribution.

In other words they might become millionaires a year from now if they can manage to keep the airline solvent and make it relatively successful

 

[deltawatch]

In other words they might become millionaires a year from now if they can manage to keep the airline solvent and make it relatively successful

Thats easy, next year they just convert more into MDA, give more to Mesa. out-source more mech. Break more contracts. WALA ..... millionaires! They only have to worry about next year ...... then SELL! h34r:

 

[PITbull]

Tom,

Yes in about a year they can start cashing in if they choose. The idea here is they are positioned to profit and become millionaires.

You say airline needs to stay solvent? With all this cost savings, ATSB, investor monies, alliances, if they can't profit now, they need to hide their faces from the business world for life.

There is no real profits now because management is still trying to muscle Pittsburgh and PA for cost savings, and in addition to that to build them a maintenace facility for RJs and Res Center. They would have a difficult time time PA if they showed a profit of $100 M or $200 M wouldn't you say?

Management's whole premise with PA is that they have no money nad need relief and tax payer dollars to stay in PIT.

 

[TomBascom]

Tom,

Yes in about a year they can start cashing in if they choose. The idea here is they are positioned to profit and become millionaires.

You say airline needs to stay solvent? With all this cost savings, ATSB, investor monies, alliances, if they can't profit now, they need to hide their faces from the business world for life.

I would think that that is exactly the position that you want them to be in.

It's a far cry from being "instant millionaires".

As for profits -- they've still got a tough job ahead of them. They've cut a bunch of costs, they've targetted PIT for more, they're probably looking to labor for still more and they're looking to outsource stuff. But the really hard problem has yet to be addressed -- that's how to fix the revenue side. Until they do something there all the rest is pretty much pointless.

 

[PITbull]

Tom,

I am not in disagreement with you on the problem with revenue.

However, when you have employees struggling the way U's employees are, there is no incentive for the execs to go above and beyond when they can take millions and parachute out of here either way, profit or not.