Wonder if US would ever do this or if wages at all levels are so low it doesn't matter.
Southwest offers buyouts to workers
03:07 PM CDT on Tuesday, July 17, 2007
By TERRY MAXON / The Dallas Morning News
[email protected]
Southwest Airlines Co., a low-cost airline which has one of the best-paid workforces, has offered buyout packages to 8,700 operations employees in hopes of enticing some early departures.
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The packages were sent the eligible employees Monday, Southwest spokeswoman Beth Harbin said, with replies required by Aug. 10.
The offers were sent to higher-paid employees who work as flight attendants and those who work in customer service, the airport ramp, provisioning, operations, freight and reservations, including supervisors.
Ms. Harbin stressed that the buyout is entirely voluntary, and that no one is being pressured or forced to leave.
“The goal is reduce our labor costs, but in a very Southwest way, which is to provide a really nice package that recognizes the contribution that they’ve already made to the company, again keeping it on a voluntary basis,†she said. “If this is not the time for them to leave Southwest, then this is still their home here.â€
Southwest Airlines Co 15.59
4:02:20 PM ET -0.04
Previous close: 15.63
Southwest, which has never furloughed employees since it began flying June 18, 1971, offered buyouts to employees in 2004. About 1,000 employees accepted the package then, Ms. Harbin said.
Southwest historically had lower pay rates for pilots, flight attendants and other employees than the older network carriers. However, Southwest was one of the few large carriers not to cut pay rates after the Sept. 11, 2001, terrorist attacks, and employees have continued to receive pay raises.
According to figures presented at a June investment conference by American Airlines Inc., Southwest had the lowest non-labor unit costs of the 10 largest U.S. carriers in the first quarter. Its costs excluding labor were 2.7 cents per airplane seat flown a mile, compared to 4.5 cents for Continental Airlines Inc., the highest-cost carrier, and 3.6 cents for American.
But Southwest had among the highest unit costs for labor – 2.6 cents per seat mile, third highest among the 10 largest carriers and below only American at 3.1 cents and Alaska Air Inc. at 2.9 cents.
Low-cost competitors AirTran Airways at 1.7 cents and JetBlue Airways Corp. 2.3 cents undercut it, as well as large network carriers who have lowered costs in bankruptcy court, including Northwest Airlines, United Airlines and Delta Air Lines.
Ms. Harbin said the package includes $25,000, continued payment of health insurance and other benefits for some time and flight privileges.
Southwest currently has about 33,000 employees
Southwest offers buyouts to workers
03:07 PM CDT on Tuesday, July 17, 2007
By TERRY MAXON / The Dallas Morning News
[email protected]
Southwest Airlines Co., a low-cost airline which has one of the best-paid workforces, has offered buyout packages to 8,700 operations employees in hopes of enticing some early departures.
Also Online
Airline Biz: Our blog takes you inside the airline industry
The packages were sent the eligible employees Monday, Southwest spokeswoman Beth Harbin said, with replies required by Aug. 10.
The offers were sent to higher-paid employees who work as flight attendants and those who work in customer service, the airport ramp, provisioning, operations, freight and reservations, including supervisors.
Ms. Harbin stressed that the buyout is entirely voluntary, and that no one is being pressured or forced to leave.
“The goal is reduce our labor costs, but in a very Southwest way, which is to provide a really nice package that recognizes the contribution that they’ve already made to the company, again keeping it on a voluntary basis,†she said. “If this is not the time for them to leave Southwest, then this is still their home here.â€
Southwest Airlines Co 15.59
4:02:20 PM ET -0.04
Previous close: 15.63
Southwest, which has never furloughed employees since it began flying June 18, 1971, offered buyouts to employees in 2004. About 1,000 employees accepted the package then, Ms. Harbin said.
Southwest historically had lower pay rates for pilots, flight attendants and other employees than the older network carriers. However, Southwest was one of the few large carriers not to cut pay rates after the Sept. 11, 2001, terrorist attacks, and employees have continued to receive pay raises.
According to figures presented at a June investment conference by American Airlines Inc., Southwest had the lowest non-labor unit costs of the 10 largest U.S. carriers in the first quarter. Its costs excluding labor were 2.7 cents per airplane seat flown a mile, compared to 4.5 cents for Continental Airlines Inc., the highest-cost carrier, and 3.6 cents for American.
But Southwest had among the highest unit costs for labor – 2.6 cents per seat mile, third highest among the 10 largest carriers and below only American at 3.1 cents and Alaska Air Inc. at 2.9 cents.
Low-cost competitors AirTran Airways at 1.7 cents and JetBlue Airways Corp. 2.3 cents undercut it, as well as large network carriers who have lowered costs in bankruptcy court, including Northwest Airlines, United Airlines and Delta Air Lines.
Ms. Harbin said the package includes $25,000, continued payment of health insurance and other benefits for some time and flight privileges.
Southwest currently has about 33,000 employees
