Southwest Restructures Leadership

[jimntx]

(Subtitle of article was "CEO Kelly cedes president's role")

http://atwonline.com/people/southwe...m=email&elq2=7f2f77720c04429ea13d2febe985d765

Comments from WN employees? Was this expected? Reading the article makes one think it was no big deal.

 

[swamt]

Hey Jim. The first thing that popped into my head was "why did he leave Southwest in the first place?" And, Look at where JC Penny is right now. Not too sure if I would be hiring an EVP from JCP. I do not understand the move to go outside of SWA for this position. Why not offer it to Mike who has been here for 23 years? Not to knock the other companies but I do not know the history of the other companies that he worked for in an upper officer role. Ever since this company started going to the outside for hiring Pres., VP, EVP, Directors, managers and even supervisors this company has steadily gone down hill. It all started when Sokol went outside to hire his little buddy from Dal-Fort and look at how he turned out and is no longer here and not by his choice. I actually feel a little sorry for the next CEO that comes in. He will have a lot of work to do to regain the culture, and trust back from the majority of the employees.

 

[jimntx]

Thanks, swamt. As I said in the OP, the article seemed to treat it as no big deal. But, the subtitle was "CEO Kelly cedes president's role." To cede something is usually not voluntary or the person doing the ceding's idea. That's why I asked. From what you say, I take it employees were not expecting this.

 

[WNMECH]

This was not expected by anyone I know, but I don't work in headquarters but the lead to the story has been buried.

Along with this change, vice president of labor relations Mike Ryan's sudden retirement was relayed to employees in the same announcement.

If you don't recall, Mike Ryan worked under the suddenly retiring Senior Vice President of Labor relations Randy Babbitt who left in August during contentious negotiations with the pilots, Flight Attendants and Mechanics after those groups (plus the rampers) called for Gary Kelly to resign.
Since then, the Pilots and FA's, signed contracts.

So two vice presidents of labor relations retire 5 months apart.

Mike Ryan has been leading the company negotiating team that has been sitting across the table from the AMFA team.

Coincidentally, this retirement comes right after AMFA files a lawsuit against SWA for their conduct at the Negotiating table.

That lawsuit quotes Mike Ryan several times.

But I am sure that is just a coincidence.

 

[WNMECH]

http://www.bizjournals.com/chicago/...ilots-slam-the-low-farcarriers.html?ana=yahoo

In this story the pilots say they don't like the new replacement labor relations Vice President.



Jon Weaks, an acknowledged firebrand and president of the Southwest Airlines' Pilots Association that represents some 8,500 Southwest pilots, called McCrady's appointment "a direct attack on labor."

Weaks also called McCrady's promotion a "poorer decision than the hiring of former VP of labor Randy Babbitt."

After Babbitt abruptly retired last year, Southwest quickly got new contract deals with both its flight attendant and pilot groups, but not before Weaks helped mastermind an unprecedented vote of no confidence in Southwest CEO Gary Kelly by no fewer than four key labor groups at Southwest — pilots, flight attendants, ramp agents and mechanics.

 

[jimntx]

Interesting addendum to the executive drama. Southwest CEO Kelly: "We don't have an heir apparent CEO."

http://atwonline.com/people/southwe...m=email&elq2=2fa0986be30b4515bdc60308796a0586

 

[swamt]

I think Babbit was the fall guy in order to keep Ryan. Question now is, is McCrady soon to be a fall guy too? Or will he shape up the companies negotiating team ASAP and we possibly get to a contract and get all this crap behind us. I am sick and tired of the companies games they are playing, it's very childish and completely unprofessional. I really do hope for the later of my examples. But I don't believe it will happen. It would actually be nice if Ryan was to shape up and get us a contract before he leaves the position in March. Yea Right!!!

 

[Birdman]

Here's a message for Mr Ryan, what have you got to loose by actually negotiating in good faith and compromising, as AMFA has, since your leaving anyway and your superiors can't demote or fire you. We're not giving up the farm now or even after your gone so just go out on a good note and get this thing done.

 

[swamt]

I agree with you BM. I thought a mediator was to get "BOTH" sides to move closer to an agreement. Looks to me that a mediator has the most to gain in mediation as the longer this continues to go the more they get paid to just sit there listen to the negotiations. It is apparent that they are not helping or pushing the co. to come closer as they still are saying it's all or nothing. AMFA has shown movement and alternatives, but the co. is NOT negotiating in good faith at all as they are standing strong on their must haves while AMFA has moved. 2 lousy days were set for the whole month of Jan. Nothing set again until Feb. and no discussions on the mechanics in how long? You know Sokol use to nego. at the table when he was here, maybe it's time to get some new meat in there and invite Nitske to the table. Something needs to be done. This is getting old...

 

[eolesen]

Hey Jim. The first thing that popped into my head was "why did he leave Southwest in the first place?" And, Look at where JC Penny is right now. Not too sure if I would be hiring an EVP from JCP. I do not understand the move to go outside of SWA for this position. Why not offer it to Mike who has been here for 23 years? Not to knock the other companies but I do not know the history of the other companies that he worked for in an upper officer role.

Nealon left WN in 2006 for greener pastures mainly because he could... There wasn't likely to be any movement that would give him room for growth at WN anytime soon, and when someone comes in with a 6-7 figure salary to go work just up the street, it's hard to ignore.

Nealon left JCP in 2011, which was right around the time their then-new CEO changed how eCommerce was treated. That change was an utter screw-up that took 5 years to reverse, so my guess is he had the sense to get out of the kitchen before the CEO's decision burned down the house. He then came back to WN in a sense, serving as an outside director for six years before taking on the EVP role for innovation.

So, I don't think you can call him an outsider, in that he's got ~12 years experience at the executive and board level with LUV. He's also not a complete insider (like Mike?) in that his resume includes three different marquis companies in the Dallas area. Outside opinions are something the airline culture could use more of -- I'm not a huge fan of promoting people the way that the two policital parties have traditionally chosen Presidential candidates (i.e. longevity and it being "their time").

Ever since this company started going to the outside for hiring Pres., VP, EVP, Directors, managers and even supervisors this company has steadily gone down hill. It all started when Sokol went outside to hire his little buddy from Dal-Fort and look at how he turned out and is no longer here and not by his choice. I actually feel a little sorry for the next CEO that comes in. He will have a lot of work to do to regain the culture, and trust back from the majority of the employees.

News flash: the culture you knew 10 years ago is dead. You're on your third, maybe fourth generation of employees. Nobody currently at WN, be they front line or executive, are ever going to work together in the same way that first and second generation of employees did. The best thing you can hope for at this stage of the company's existence isn't the leader who completely gets and buys into how WN used to work, but instead someone willing to question why things work the way they do, and smart enough to know when it isn't working now.

This is your new normal. Figure it out, or get as far away as you can.

 

[Birdman]

Any truth to the rumors of Mike Ryan being retained, after retirement, as a consultant at an inflated rate of pay?

 

[swamt]

I wouldn't rule it out. Mikes very smart. This may have been part of his plan to "retire" right smack in the middle of contract negotiations. And get an offer as a consultant to finish out contracts and yes, more than likely he will get paid a lot more as a consultant, or contract worker. If this is all true and it does happen, I would be worried that he could quite possibly drag out negotiations for his benefit of continuing his consultant pay going to his needs and length to his desires. And of course he will blame it all on the mediators saying they set the schedules. While all this time the company has not once asked the mediators to please try and set more dates each month, not once. When the union has made these request of the mediators. I don't see us having anything by the 5th year date of Aug 2017.
If I get any confirmation or non confirmation I will pass it along.