What''s up with the Flight Attendants?

wnfan37

Member
Jan 20, 2003
59
0
Seems like other unions have negotiated contracts except for the flight attendant group. Any insights as to why this particular group is taking longer to negotiate? I believe their union is calling for industry leading pay. I realize most unions want this for their members, but how does the current economic downturn play into that (or does Southwest''s profitability nullify the aviation downturn logic?). Anyone think this particular negotiation could turn ugly?
 

swflyer

Senior
Aug 20, 2002
407
0
Chicago
www.southwest.com
The flight attendants are basically re-writing their contract, all 36 sections, for clarity and "industry-leading" pay and work rules. So far, negotiations have progressed well, and many flight attendants are acting as Precinct Captains or info reps for their fellow flight attendants. They're the ones wearing the bright yellow buttons on their uniforms.

Any negotiation could, "turn ugly". Personally, this one has a LONG way to go before it gets there. The flight attendants just don't want to be rushed into a less than stellar contract.

IMHO
 

ICUNMCO

Newbie
Aug 29, 2002
14
0
Thank You SWFlyer, yes we are taking our time. We actually have a VERY GOOD Negotiating Team this time around and things are progressing at a positive speed. Most people do not realize that a F/A Contract is very complex. Unlike our brothers and sisters on the ground it has to cover things like, time away from base, overfly, reroute, FAA Restrictions on hours of service.[BR] We are asking for an Industry Leading Contract, because we deserve it. Not sure where we rank now in pay, but when we benchmarked 2 years ago we were # 8 among the top 10 airlines in pay. We were also listed at the most productive, not to mention ranked #1 for Customer Service. Herb was quoted a few years ago as to why the F/A group did not get Holiday Pay and his comment was something like, Well, they did not ask for it! Well, we are asking for it now, that and a few other things we did not ask for last time.[BR] Last week the Union presented a chart, showing the different contracts. Its kinda sad to see that a New Hire made more in 1982 than they do now. I myself keep reminding myself that this contract is not for 2 or 3 years, probably will be 5 or 6. In 6 years we could be making record profits again and if we did not ask for pay raises now, do you think the company will volunteer to give us raises when the profits increase?[BR] I do not think there is a big chance of anything happening anytime soon. WE are taking our time and just seeing how things play out.[BR][BR]
 

RES4LUV

Member
Aug 20, 2002
27
0
www.usaviation.com
Hi there icunmco, Welcome to the board! I for one dislike the term INDUSTRY LEADING CONTRACT---We can see where that got other carriers. Our TA was given to us faster than a speeding bullet not because of other res & cs contracts but mirrored our rampers contract. (it had to be presented by Dec.31 w/6yrs. to get stock options) Will you also be able to get stock options since the deadline has past? Wish you all the best because you are the BEST!!!
 

swflyer

Senior
Aug 20, 2002
407
0
Chicago
www.southwest.com
To my knowledge, the SEC has not yet ordered a change in options rules. (I'm willing to be wrong). The proposed rule change would require corporations to run options programs by their boards and shareholders, before disbursing them to a certain group. Therefore, to my knowledge, the flight attendants have not missed any opportunity or "deadline".

In anticipation of this rule change, SWA management offered it's workgroups options. The flight attendant negotiating team, after asking for a FULL compensation package, decided it was premature to talk about options, and tabled the discussion.

IMHO, options are a wonderful "and" in a compensation package. I just haven't found them very useful at the grocery store.
 

KCFlyer

Veteran
Aug 20, 2002
10,631
1,322
www.usaviation.com
[blockquote]
----------------
On 1/28/2003 1:32:08 PM swflyer wrote:

IMHO, options are a wonderful "and" in a compensation package. I just haven't found them very useful at the grocery store.
----------------
[/blockquote]

I have! In fact, I found them helpful when I bought a house...when I put a deck on the house, and when I went to buy a car. The options (from a previous employer, not LUV) helped put a nice down payment on the house and car, and paid for the deck in full. The beauty of them is, once they are exerciseable, you merely issue the 'buy' and 'sell' order when you want the money. They'll buy at your strike price and sell at market price, the broker handling the transaction will then send you a check for the difference. No money out of your pocket at all (well, okay, the tax man will have his hand out). I'm long on LUV, and with the uncertainty in the industry driving the price of all stocks lower (including LUV) you could be in a position to have a very sweet strike price.
 

swflyer

Senior
Aug 20, 2002
407
0
Chicago
www.southwest.com
KC,

I think we're on the same page here, re: options. I'm just not looking for an either/or choice.

Keep me productive, share some of the wealth, and options make lovely frosting.

My chief concern is the increase in time I sit, making only per diem. I came to SWA to work, not sit.
 

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