spacewaitress
Senior
- Joined
- Aug 27, 2002
- Messages
- 468
- Reaction score
- 0
I heard the company was going to ask for 19% from the flight attendants after they junk the pensions, which supposedly will be by the end of the month.
New Paycuts
- Thread starter spacewaitress
- Start date
Rumors are always spreading because that is what they do.spacewaitress said:
If Management is looking to get a billion dollars in wage concessions it is easy to figure out a few different senarios.
1 billion divided by 60,000 employees is 16,666 per year each.
1 billion divided by average salary of 50,000 would be laying 20,000 people off.
Or lay off 10,000 and cut wages by 8,333 per year.
Take away 2 weeks vacation from everyone and 8,333 each.
The combinations are endless, and what will happen, will happen, when they announce it.
Rumor has it I am coming back to run the company. I am a legend in my own mind. Ha.
Don't spread that around.
Good luck.
Or the other senario would be for all of management to leave and let the employees self direct themselves. Of course self serving people will not suggest this one..
They are the elite and are proud of their accomplishments to date.
This might save the 1 billion and 4 more billion in morale building.
spacewaitress
Senior
- Joined
- Aug 27, 2002
- Messages
- 468
- Reaction score
- 0
I'm totally chilled but fully expect UAL to follow USAIR's lead in some fashion. I have wide open eyes where this industry is concerned. que sera, sera.novaqt said:
BigRed1
Member
If Management is looking to get a billion dollars in wage concessions it is easy to figure out a few different senarios.
-----------------------------------------------
It is my understanding that they had already identified 655 million in other cost cutting initiatives. They then stated they needed another 500 million over and above the 655 million and any pension savings. This is where I think they arrive at the 1.1 billion in savings.
So...While this 500 million dollars number is still a large number, I don't expect they need all 1.1 billion in additional savings from our salaries and benefits. But heck, what's 500 million among friends.
-----------------------------------------------
It is my understanding that they had already identified 655 million in other cost cutting initiatives. They then stated they needed another 500 million over and above the 655 million and any pension savings. This is where I think they arrive at the 1.1 billion in savings.
So...While this 500 million dollars number is still a large number, I don't expect they need all 1.1 billion in additional savings from our salaries and benefits. But heck, what's 500 million among friends.
I think the number is AT LEAST 500 million that will be coming from labor, with another approximately 650 million from non-labor sources, as our non-labor costs are higher than our legacy peers and management is aiming to fix that.
Further, in my opinion, I feel that the size of our paycuts will have a loose correlation to future oil prices. If oil prices go up, I assume the amount they (they = management, through the direction of the exit financing banks) will want to take from labor will increase as well as it will difficult to make up higher costs due to high Jet A prices anywhere else.
The question is, how much from each group? Will it be about 10% across the board (that's about 500M roughly)? Will the group that has already given 30% or 40% in the past agree to give up again when other groups only gave up roughly 10% last time? Will there be war as each employee group looks to another higher paid employee group to take the cut because they can't "afford" a pay cut? Will one employee group say "NO" no matter what and start a little UAL civil war that spooks investors and leads to liquidation?
More importantly, do you have at least several months' worth of living expenses in the bank in case the last sentence happens? We might need it by next summer!
Further, in my opinion, I feel that the size of our paycuts will have a loose correlation to future oil prices. If oil prices go up, I assume the amount they (they = management, through the direction of the exit financing banks) will want to take from labor will increase as well as it will difficult to make up higher costs due to high Jet A prices anywhere else.
The question is, how much from each group? Will it be about 10% across the board (that's about 500M roughly)? Will the group that has already given 30% or 40% in the past agree to give up again when other groups only gave up roughly 10% last time? Will there be war as each employee group looks to another higher paid employee group to take the cut because they can't "afford" a pay cut? Will one employee group say "NO" no matter what and start a little UAL civil war that spooks investors and leads to liquidation?
More importantly, do you have at least several months' worth of living expenses in the bank in case the last sentence happens? We might need it by next summer!
Watch them try and get half the airline to go to a TED wage scale.. I.E., 30% paycuts, and starting over with TED at the bottom of the scale. Either way, I am out, had enough.
Also, didnt the airline say it would be 90 days before it makes up its mind on the pensions. So the first poster you said the pensions would be settled this month is wrong. The 90 days would end early-mid December. They only said this statement 2-3 weeks ago.
Also, didnt the airline say it would be 90 days before it makes up its mind on the pensions. So the first poster you said the pensions would be settled this month is wrong. The 90 days would end early-mid December. They only said this statement 2-3 weeks ago.
spacewaitress
Senior
- Joined
- Aug 27, 2002
- Messages
- 468
- Reaction score
- 0
I don't really know...just repeating what a pilot told me, but it did seem off the top of his head. I guess to me it doesn't matter either way...I'm resigned to the fact that it'll happen. The timeline doesn't really make any difference to me, but sorry if the info was incorrect.Rampman said:
The Gopher
Advanced
- Joined
- Jun 28, 2004
- Messages
- 141
- Reaction score
- 0
About the end of October, look for a bunch of stations to become Express-only, like we had in 2001. Also non-hub rampers and MM are in the crosshairs for outsourcing to DGS or other such companies.
Oh, and a bird told me RR is moving to DEL.
Oh, and a bird told me RR is moving to DEL.
Kev3188
Veteran
Which stations?The Gopher said:
The Ronin is back. Cut to the chase man. Incisive, infective and so effluent. I can relate dude, i'm slogging the c checks dock 7 days, scarbus, you dig- i know you do! Plan B for me: ride out the savings 2-3 years, fly my 182, and enjoin a new reality at the nexus of the cosmos. Peace out.....
