Airline Targets Salaries, Benefits

[BoeingBoy]

Airline targets salaries, benefits
US Airways seeks to slice costs by $1.5 billion more

Wednesday, February 25, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette

US Airways is looking once again at wages and benefits as it seeks to slice expenses by more than $1.5 billion a year.

Article

Jim

 

[N628AU]

Maybe the reason that wages and benefits continue to be out of line is that all the junior people are gone, leaving only those at the top of scale in salary, vacation, and sick time left? Not only are they paying more per hour, but the additional sick and vacation time being fairly used that has accumlated over decades of service is killing productivity. Had they had the foresight to offer early out packages, they would have taken a front end hit, but would be in a much more positive position now. People with 17 years are part time in many departments, and gone in many others.

 

[Harry Callahan]

Maybe the reason that wages and benefits continue to be out of line is that all the junior people are gone, leaving only those at the top of scale in salary, vacation, and sick time left? Not only are they paying more per hour, but the additional sick and vacation time being fairly used that has accumlated over decades of service is killing productivity. Had they had the foresight to offer early out packages, they would have taken a front end hit, but would be in a much more positive position now. People with 17 years are part time in many departments, and gone in many others.

A GREAT BIG SECOND TO THIS ONE.

 

[delldude]

boy i expect a big "i told you so" here................
funny last month it was on productivity rules....seems the line just got blurred by jesus

 

[AP Tech]

Maybe U should start at the top!!!! There has been a comparison chart floating around lately with the salaries of the CEO & COO of some of the majors and LCC. Seems funny how Siegel and Cohen are at the top of the chart?????

 

[ktflyhome]

AP TECH: You're right, there is a comparison chart floating around. Saw it myself, first hand. A copy was handed to me from a Gate Agent. Seigle and his gang were certainly at the TOP. I am not good at remembering figures exactly, but I do recall seeing Top Brass at Jetblue and Southwest were earning under $300,000.00 a year including bonuses. Where as Dave himself had a salary of around $1,200,000.00 at least. I believe this was 2002 figures though. <_<

 

[airlineorphan]

Another 1.5Billion A YEAR?!?!?!?!???? Remember that the last round of concessions set off rounds of concessions at UAL and AMR. The combined total of US, UAL and AMR concessions will come to about $36billion over the lives of the contracts. Add that to another 18 billion in cumulative bailouts, tax cuts and then also about $1 billion in lucrative CRAF contracts, and I start to scratch my head wondering--what did the big network carriers' management do with all that loot?

And for his next trick, Dr. Jesus Bronner will make monkeys fly out of his.....

There is no satisfying these parasites. If you offer up your vein for them, they won't stop until they have bled you dry.

In solidarity,
Airlineorphan

 

[Winglet]

Come on guys, Siegel's gonna need "a little something extra" to tide him over when he turns out the lights next fall.

 

[TomBascom]

Remember that for every billion dollars in concessions they've so far managed to find a way to make two billion in revenue reductions...

 

[RedOne]

I do recall seeing Top Brass at Jetblue and Southwest were earning under $300,000.00 a year including bonuses. Where as Dave himself had a salary of around $1,200,000.00 at least. I believe this was 2002 figures though. <_<

Check it out for yourself. (2002 figures)
You can look at almost any executives salary at this site......
www.ecomponline.com

 

[BoeingBoy]

Forbes.com has 2003 numbers for CEO's - over $1.6 Million for Dave. Makes you wonder what he would have made without the 20% pay cut.

Jim

 

[ITRADE]

Yes, by this measure, Gordon Bethune should be tossed out on his ear since Continental barely broke even and he got paid 7.63 million dollars.

 

[AOG-N-IT]

Yes, by this measure, Gordon Bethune should be tossed out on his ear since Continental barely broke even and he got paid 7.63 million dollars.

"Barely Breaking Even" is a damn sight better than the results Seigel is delivering Itrade.

..and let's not forget that Gordon has a proven track record on being able to turn his airline around. The same cannot be said of Seigel at this point in the venture..now can it? :huh:

Lastly...you cannot discount the fact that Gordon has been on the job at CO a good deal longer than Seigel has at U as well. Then there is the absolute fact that CO is a much larger company than U is (both in past and present terms) Bigger and profitable (even if marginal?) deserves greater rewards.

I'm sure nobody would have a problem with what Seigel is making..if he wasn't so hard pressed to take away what we are making..or were making as the case is. Lastly...Seigel wants to drawus down to LCC wages (WN excluded)..yet he wants to make money for himself and the upper tier on par with the Legacy brass elsewhere. I wonder why the employee's have a problem with that?

 

[ITRADE]

"Barely Breaking Even" is a damn sight better than the results Seigel is delivering Itrade.

I don't think there was ever a guarantee that US was going to break even in 2003.

..and let's not forget that Gordon has a proven track record on being able to turn his airline around. The same cannot be said of Seigel at this point in the venture..now can it? :huh:

Sure, because he's been on the job for about a year now. Not much time now, is it?

Lastly...you cannot discount the fact that Gordon has been on the job at CO a good deal longer than Seigel has at U as well. Then there is the absolute fact that CO is a much larger company than U is (both in past and present terms) Bigger and profitable (even if marginal?) deserves greater rewards.

My point.

Actually Continental isn't that much larger. Maybe 100 planes larger.

In any event, Gordo's breaking even pales in comparison to the financial results at both Southwest and JetBlue - and Gordo was paid substantially more than Neeleham or Parker. So again, out the window he goes.

 

[AOG-N-IT]

I don't think there was ever a guarantee that US was going to break even in 2003.



Sure, because he's been on the job for about a year now. Not much time now, is it?



My point.

Actually Continental isn't that much larger. Maybe 100 planes larger.

In any event, Gordo's breaking even pales in comparison to the financial results at both Southwest and JetBlue - and Gordo was paid substantially more than Neeleham or Parker. So again, out the window he goes.

100 airplanes is a hell of a lot of difference....ask anyone what 100 planes would do for the ones on the street now?

The issue is not a guarantee's...we know that U wasn't going to make a profit in 2003 or 2004 as it looks....but Gordon of all the legacy CEO's is inching out a profit allbeit modest....but a profit none the less.



Actually , nobody at U gives a rip what Gordon is making...or even how many planes he has..the issue is this. Seigel wants us to be an LCC in terms of wages...and WE want him to be paid on par with the LCC's CEO's in kind. Fair is fair.

If Jetblue , Airtran , Southwest and Frontier are to be the benchmark?...make that benchmark across the board for everyone that draws a check from this place.

Frankly...I would welcome a WN payscale and work rule guidelines....I would be getting a 25% raise in my job..and my duties would be streamlined considerably. I could give all my focus on my prime responsiblities Vs. having to babysit outside distractions that aren't exactly related to my primary function.