Southwest Offers Buyout Program

[sentrido]

http://money.cnn.com/2004/05/27/news/midca...dex.htm?cnn=yes

 

[delldude]

UAIR ONLY HAS LUCRATIVE BUYOUT PACKAGES FOR UPPER MANAGEMENT.

 

[geo1004]

Why doesn't US do this? Because it does nothing for them. If Southwest offers an employee a buyout and the employee accepts and Southwest in turn decides to hire a new employee to take the old one's place, they hire a junior, bottom payscale individual. Enter cost savings for Southwest. If US offers the same buyouts and they then try and replace the former employee with a new one, they get a senior furloughed employee back on the books (higher pay, costlier benefits) so their is no real advantage to US to swap in and out senior payscale employees.

 

[USFlyer]

A buyout would only work for US if they laid folks off instead of furloughing them. For the reasons geo1004 stated, it buys US nothing while further depleting cash balances.

 

[sentrido]

Im sure your all right. Just speaking from the point of view of a mechanic, I just wonder how many furloughed people would come back. It has been almost 3 years. Do you think people would risk whatever new life they have made for themselves to work for a company in such "dire straights"? Just throwing it out there to see what you all think.

 

[PITMTC]

The guys/gals that have been out for three years may not come back, but there are mechanics and utility employees being furloughed every schedule change. They would probably come back. I know of several mechanics that are just going to stay out, collecting severance and unemployment waiting for next de-icing season to come back just to get recalled.

 

[sentrido]

Why was this moved?






Moderator's note: Duplicate topic. See the following thread to continue the discussion.

Southwest Considring Employee Buyouts