Possible buyouts at LCC?

[nonrev]

If and I mean if the merger happens....Do you think LCC will offer the same early out package that is now being offered at AMR with the flight attendants and mechanics. I see the sweetner is around $40,000 for each of these classifications. I only ask because there are quite a few mechanics that would separate from the company if that would occur....me being one of them. Any opinions out there on this?

 

[wings396]

Tough to say, but you never know. It has always been my belief that it's not a real good deal unless you are very close to leaving anyway. That lump some of cash sounds attractive up front, but less than a years salary won't go that far once you are out for good. Toss some medical benefits in there, and it may be a different story.

 

[Black Magic]

LCC doesn't believe in buyouts. They are masters at figuring a way to fire or layoff employees.

 

[SparrowHawk]

LCC doesn't believe in buyouts. They are masters at figuring a way to fire or layoff employees.

While I find your assessment a bit harsh, US Airways hasn't to my knowledge done a buyout/early retirement in it's history.The reason is CASH and it takes a great deal of it to fund buyouts. DP & SK are first and foremost cash horders so a buyout would seem to be a long shot. If it takes a buyout to seal the merger you'll be offered a package.

 

[Kev3188]

Tough to say, but you never know. It has always been my belief that it's not a real good deal unless you are very close to leaving anyway. That lump some of cash sounds attractive up front, but less than a years salary won't go that far once you are out for good. Toss some medical benefits in there, and it may be a different story.

*Legit* medical (as opposed to COBRA) would likely have people rushing for the exits...

 

[cltrat]

*Legit* medical (as opposed to COBRA) would likely have people rushing for the exits...

like a stampede

 

[mike33]

( Raising Hand !!!! )

I'd be at the head of the line

 

[tadjr]

US Airways hasn't to my knowledge done a buyout/early retirement in it's history.

The customer service agents had an early buyout package approved in our last bankruptcy contract offer. FT $15000, PT $7500 if I remember correctly. That was the only reason it passed because so many people wanted to jump ship and thought this was a good time to do it. Many of the friends I had that took it and left say they wish they had stayed because it was gone in a flash and they arent making what they thought they could when they left. They also got flying bennies, but SA4 on US ONLY. Not even showing as retirees to get oal flights. Overall, it was a great deal for the company (early out replacements saved the company a lot of $), but not so great for those who took it and ran.

 

[wings396]

While I find your assessment a bit harsh, US Airways hasn't to my knowledge done a buyout/early retirement in it's history.The reason is CASH and it takes a great deal of it to fund buyouts. DP & SK are first and foremost cash horders so a buyout would seem to be a long shot. If it takes a buyout to seal the merger you'll be offered a package.

Not true, there was one offered back in the early 90's that was pretty decent, and there was another one in 2005 that wasn't that good.

 

[john john]

If and I mean if the merger happens....Do you think LCC will offer the same early out package that is now being offered at AMR with the flight attendants and mechanics. I see the sweetner is around $40,000 for each of these classifications. I only ask because there are quite a few mechanics that would separate from the company if that would occur....me being one of them. Any opinions out there on this?

What did AMR offer the passenger service agents

 

[SparrowHawk]

The customer service agents had an early buyout package approved in our last bankruptcy contract offer. FT $15000, PT $7500 if I remember correctly. That was the only reason it passed because so many people wanted to jump ship and thought this was a good time to do it. Many of the friends I had that took it and left say they wish they had stayed because it was gone in a flash and they arent making what they thought they could when they left. They also got flying bennies, but SA4 on US ONLY. Not even showing as retirees to get oal flights. Overall, it was a great deal for the company (early out replacements saved the company a lot of $), but not so great for those who took it and ran.

Thanks for jogging my memory.

 

[Newman]

While I find your assessment a bit harsh, US Airways hasn't to my knowledge done a buyout/early retirement in it's history.The reason is CASH and it takes a great deal of it to fund buyouts. DP & SK are first and foremost cash horders so a buyout would seem to be a long shot. If it takes a buyout to seal the merger you'll be offered a package.

US did offer early retirement in 1991 and again in 1993. I remember you had to be at leat 50 to qualify. A buyout was offered in August of 2005 and two of my co-workers took it, but I think they were close to quitting anyway

 

[ContUNITEus]

While I find your assessment a bit harsh, US Airways hasn't to my knowledge done a buyout/early retirement in it's history.The reason is CASH and it takes a great deal of it to fund buyouts. DP & SK are first and foremost cash horders so a buyout would seem to be a long shot. If it takes a buyout to seal the merger you'll be offered a package.

I am not sure that under the AWA management style you will ever find buyouts. AWA management truly does not want to see any employee (especially an AWA employee) leaving with a bunch of cash. It's much more fun to keep them and keep working on firing them at some point down the road.

 

[SparrowHawk]

I am not sure that under the AWA management style you will ever find buyouts. AWA management truly does not want to see any employee (especially an AWA employee) leaving with a bunch of cash. It's much more fun to keep them and keep working on firing them at some point down the road.

I find it hard to refute your argument based on the track record thus far. However I will state that if Doug Parker feels that a buyout is required in order to get rid of Top of Scale people and make a merger go smoother, bought out you will be.

 

[wings396]

I am not sure that under the AWA management style you will ever find buyouts. AWA management truly does not want to see any employee (especially an AWA employee) leaving with a bunch of cash. It's much more fun to keep them and keep working on firing them at some point down the road.

When you look further into it, there really isn't what I call a "Bunch of Cash" involved. Based on what has been offered in the past, it is less than a years salary. The buyout in the early 90's offered some decent perks, but I was too young then to even pay attention. All I knew then was that it got a lot of those pesky senoir guys that were ahead of me out the door...
Either way, a buyout will only benefit someone who is getting ready to leave in the near future.