Thanks Doug: US Outsourcing 7 cities

[robbedagain]

lets outsource mgmt. first to go is d.p. second to go is scott kirby and so forth on down. I sure hope the ND08 team will get strong language and scope. I also have to question why is the company allowed to outsource now I thought the contract said after 12/31/2011 in places such as ABQ SNA etc? nothing shocks me as to what this circu outfit does anymore. Im just in shock that they are insourcing ATL...for now

 

[WorldTraveler]

Funny how the free market has consistently been devaluing labor decade over decade, with the stagnation and now the decline of median wages. In order to remain profitable these days many if not most firms, including US Airways, have been actively eroding wages, degrading the quality of service and products, and fighting against regulations designed to protect the environment and consumers.

Adam Smith was visionary, but let's none of us fool ourselves into thinking that the "invisible hand" of the market is in this age attached to any body but that most interested in accumulating the wealth of the middle classes into the vast depositories of the few, where it can then be invested in turning public opinion and government policy towards initiatives that allow for easier exploitation of the lower classes and the environment.

When markets stop growing, capitalism cannibalizes its own components. The free market doesn't care if you want to buy a house or send kids to college. The free market is concerned about paying as little as possible for as long as possible, and when that becomes too much they simply fire a guy and hire a new replacement. Forget education, the middle class is being priced out of college and last year my state gave away half a billion in subsidies and tax cuts to businesses only to slash as much from the education budget. The rich get richer and the poor poorer at an accelerated rate, as the middle and working classes settle into a lifetime revolving-door cycle of menial service-industry work, essentially functioning as the drones, soldiers, pliant voters, inmates, and most importantly, consumers for the elites controlling capital wealth and state power.

So what are we supposed to do when the free market calls for wages at or below minimum wage? Grin and bear it, kiss the rings and thank our overlords for keeping us employed for yet another day? I'm no Marxist, but I can't help but lol at the cult of the free market. As far as I can tell, it's called the "free" market, because they more wealth you accumulate, the more freedom you can afford.

[

Very well said.. and the simple reality is that the visionaries who called for open markets didn't think the process through to the end to end stage to realize that decimating the American local workforce in favor of building economies around the world would ultimately leave American workers bankrupt and jobless... which is exactly where the US is right now.
Compound it w/ a mindset in Washington that the only way to fix the problem is to shift more responsibility for fixing the country to government and it is no wonder that companies won't invest in growing their businesses and won't hire American workers.
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Look at the AT&T/T mobile merger agreement in which AT&T basically told the Feds they would bring 5000 outsourced jobs back to the US if the merger was approved - which the Feds won't do. Business is in a position to not do what is good for the country if they can't get what they perceive to be best for them.
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The sole reason why companies outsource even when it costs less on a dollar basis TODAY to do that work inhouse is because an employee is a COMMITMENT w/ no defined end date... an outsourced contract has an end date and known costs. As health care continues to rise along w/ alot of other costs - including fuel - companies want the certainty of knowing what costs will be going forward. They don't really know what health care costs will be in 5 years, how much of your benefits you will use, or even how long they will stay at the company.
As long as the economy is uncertain - and it will be until Europe and the US and Japan get their finances in order - which may never happen - companies will think short term.

LD3,
you do realize that WN employees are highly productive in return for those high wages?... and the company also has a business plan as a result of being a younger airline that has not need to make a lot of mid-course corrections.

Jester,
you are right that continual cuts DO add up... but it also says that US is still far from being a stable and viable carrier as a result of its smaller size. US is probably close to being where it needs to be network wise but other carriers continue to look for opportunities to redeploy the resources they once flew 12X/day in markets that will now only support flights 8X/day as a result of high fuel prices.

Continued increases in fuel prices mean that the size of each individual market will shrink; the only way to keep an airline the same size or growing is to be adding markets faster than existing markets are shrinking.

If you aren't in a city that has reasonably decent growth potential, you should be thinking about being in one if you want to ensure a long term viable job.

 

[Kev3188]

Very well said..

+1...

Great post, CJ.

Compound it w/ a mindset in Washington that the only way to fix the problem is to shift more responsibility for fixing the country to government and it is no wonder that companies won't invest in growing their businesses and won't hire American workers.

That's just it, though... Corporations have proven that they are unwilling to create jobs. Profits are at an all time high, worker productivity is through the roof, and yet here we are. With them sending a clear message that they are unwilling to do their part, who else is able to put people back to work on such a large scale?

 

[WorldTraveler]

Not to turn this into a political discussion but business in the US is absolutely afraid of pending regulations and increased costs that could happen if they hire workers today. History shows that businesses will not invest w/ that kind of uncertainty hanging over their heads.
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I also understand the disdain many here have for Reagan due to his treatment of labor but he did pull off one of the greatest economic turnarounds in modern US history.
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There clearly should be away to stimulate the economy and encourage businesses to invest and hire w/o destroying job protections.
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We can look at some of the countries of Europe and see that they are improving their economies by creating a more pro-business environment w/o throwing their own workers under the bus.
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As in most things in life, we need to find a middle ground between the no-holds-barred policies of Reagan and the current thinking that only the government can solve the problem - which is completely paralyzing to the economy.
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When you consider that airlines and other transportation companies will face continually escalating fuel prices which are nothing more than OPEC maximizing their revenue - regardless of how energy efficient you may or may not be - the airline industry must have a plan that continues to create efficiency and grows revenues WITHOUT the need to cut employees every time the economy falters or some other cost item increases. Until the industry as a whole, and airlines individually reach that point, there will be unfortunate people who will be subject to the cuts that US is doing now...
and there will always be the reality that airlines can move their planes from one part of the world to another in search of better revenues, leaving behind everyone on the ground.

 

[autofixer]

+1...

Great post, CJ.



That's just it, though... Corporations have proven that they are unwilling to create jobs. Profits are at an all time high, worker productivity is through the roof, and yet here we are. With them sending a clear message that they are unwilling to do their part, who else is able to put people back to work on such a large scale?

With socialized medicine coming in two years, with its crushing costs; cap and trade carbon rules being implemented by fiat by the EPA and its crushing costs; new FINREG being imposed at a crushing rate on corportations;the Federal Reserve printing money at an insane rate creating pending inflation and higher costs...I wonder why no one is adding jobs and why would you not want to outsource your crushing regulatory costs? Elections have consequences. Good bye America. 🙁

 

[Harry Callahan]

You folks do realize this is less then 1% and all have jobs if willing to move.

What if that 1% was you jerk?

 

[UPNAWAY]

I'd go find another job or move or retire. The last thing I'd do is whine and complian about my lot in life.

BTW, It's just business not personal.

 

[bagchucker]

You folks do realize this is less then 1% and all have jobs if willing to move.

I am in that 1%. If you were in that 1% would you be willing to sacrifice all you have and move 3000 miles across country for this POS Company that we work for?

 

[bagchucker]

I'd go find another job or move or retire. The last thing I'd do is whine and complian about my lot in life.

BTW, It's just business not personal.

It might be business, but obviously it is not personal for you since you are not affected. It is personal for me, I am affected. Thanks for the compassion. You fit the mold of the rest of the higher ups at US Airways.

 

[Jimmy Neutron]

I am in that 1%. If you were in that 1% would you be willing to sacrifice all you have and move 3000 miles across country for this POS Company that we work for?

Too bad that this entire country seems to be all about ME,ME,ME!!!!!!

Remember the US Constitution?

It's, "WE THE PEOPLE" not ME THE PEOPLE......And until people in this country get back to the basics and away from all the greed, things will just keep getting worse for everyone but the elite here in the US.....

We get closer to becoming a third world country by the day here....

It's sad....but true...

 

[UPNAWAY]

You couldn't be more wrong Jimmy. You to have bought into the Union and Democrat "Collective" thought process also knon as socialism and communism.

We are all best off when each individual acts in their own best interest and is forthright about that. We all do that anyway but most are claiming to help others which is just BS. If everyone took care of themselves and didn't expect the Gov't, Union or Company to take care of them we as a Country would have almost no problems. The idea of collectivism or village is the problem because it is a lie design to trap people into a lot in life while the few (ruiling class and big corporations) benefit at the expense of the middle class and small business. Look no further than Europe as to what Unions and Liberals want for America. A ruiling class and a few wealthy people, with everyone else stuck in jobs for life with no upward mobility. America can and should do much better.

 

[700UW]

Will any US Fleet or CSA tell Mr Anti-union how that worked out for you all in 1992, I get tired of repeating myself.

 

[blue collar]

Yeah, there's no room for collectivism in these UNITED States of America. If you lived in 1700s England, you'd probably be spewing the same crap about the 'greedy' colonies

 

[luvthe9]

We must constantly be on the lookout for ways to be more productive and reduce costs – and that means taking steps like these to ensure the survival of our company and stable employment for more than 32,000 employees. I have an idea, how about cutting all management 's bonus money up to 200%, senior V/P of flt ops get a 300 to 400 thousnd dollar bonus and it gets worse higher up the ladder, how about getting rid of all the spies that were hired to tell on pilots for slow taxi, not to mention all the extra Asst. chief pilots we don't need. You want cuts and to save money start for the top, show some leadership.

 

[Move2CLT]

They have. They've kept you on LOA93 this whole time at a savings of $7.5M a week.