IAM files for mediation at WN

[WorldTraveler]

Well you brought up the load factor theory, not me.

But just to put more holes in your theory, because WN has lower load factors than some of its competitors and still is making record profits without charging for the first two bags, WN has more opportunities to increase revenue much more than the others.

Having extra seats to fill is not a liability at these profit levels.
It is just a bigger opportunity to make even more.

yeah! we're getting to the same page.

I do not believe that WN is at a liability, as you note, but simply that THE INCREASED REVENUE if the LFs were increased could go a long ways to providing the revenue that WN needs in order to justify higher salaries.

You are right that the LFs are like baggage fees which provide potential increased revenues.

Again, there is no doubt in my mind or yours that WN can make money with their current revenue structure.

But if WN is reluctant to increase salaries, then they have to either come up with more revenues to justify higher labor costs or labor will have to demonstrate why it should be paid more than its peers at other airlines.

If WN labor can do the latter, then the cost and revenue part is immaterial... but I don't think it will be.

 

[WNMECH]

I expect that there will be some give and take on work rules with all groups if they are to get raises, just like every contract.

Neither side gets everything they want.

 

[SharoninSAT]

.
A Labor Day retirement letter from Tom Higginbotham...
 
http://iamdl142.org/GEN%20BULL%202014-118.pdf

 

[SharoninSAT]

. 
 
I wish him well in his retirement... 
 
Sharon

 

[555_in_PDX]

FYI - TWU Local 555 has been in Negotiation for over 3 years and nearly 2 years in Mediation. Currently the federal mediator has called off any further discussions due to lack of progress. There has been a marked change in the last 3 years (FL acquisition) in the way the company is treating the ground ops employees. My perception is we are no longer part of the family. The company is giving us many concessionary proposals that most of us find unacceptable.

 

[swamt]

555, thx for that update, didn't realize you guys were in mediation for so long.  I wish you and all good luck.  BTW, not the same since H and C have left...

 

[lineguy]

http://www.theguardian.com/money/2014/apr/03/inside-the-union-negotiations-southwest-airlines

 

[WorldTraveler]

from the article:


"Local 555 president Charles Cerf thinks he knows the reason for the delay (in negotiations): the Southwest's push to reduce its number of "career jobs" and make part-time workers 40% of the company's workforce." After a few skirmishes between the company and its union over sick time, Southwest is now "doubling its efforts" to push for more part-time workers, Cerf said.

"Remember, bags fly free – on OUR backs," said Phil McNally, Local 555 District 2 representative.

It's easy to get caught up in the romanticism of the old Southwest."


here's another.... there will be more

http://www.businessweek.com/articles/2014-09-17/southwest-airlines-plan-to-keep-costs-low-saying-no-to-pay-raises?campaign_id=yhoo

with the key notation that WN's workforce is not high cost but rather historically highly efficient compared to its peers. That efficiency doesn't exist when WN starts flying 3 hour plus flights that are the same as other airlines who can manage to put as many people on this planes as WN does.