American looking to "right-size" the company and staffing levels for the Fall and 2021

[jimntx]

Could someone please explain to me how the financial position of Southwest can be materially altered by furloughing 42 stores employees? This looks more like a spite furlough than a financial furlough.
Either that or those stores people have a hell of a contract negotiations team.

 

[JREwing]

Depends on how many stores employees they have. I would guess their numbers aren't close the the "big 3." Perhaps swmt could shed some light.

 

[eolesen]

It's precedent. If they haven't come to the table, the letter of the contract will be followed.

 

[swamt]

Could someone please explain to me how the financial position of Southwest can be materially altered by furloughing 42 stores employees? This looks more like a spite furlough than a financial furlough.
Either that or those stores people have a hell of a contract negotiations team.

Depends on how many stores employees they have. I would guess their numbers aren't close the the "big 3." Perhaps swmt could shed some light.

I don't have the exact numbers but JR is correct, SWA doesn't have nowhere near the number of stores employees as do the other big 3. On top of that, can only speak for Dallas, but also hearing from our store employees they are short all over, in Big "D" they were approx 12-18 stores employees short with all kinds of O/T and even mandatory O/T for some time up until COVID pandemic hit.
If I get the total number of stores employees I will update.

Jim, Yes 42 being furloughed at 20 something per hour is not a whole lot of savings when looking at the big picture, but, by the time they use the same % of employees in all other groups with the 10% request it will add up big time, especially when you get to the big 3 groups, Pilots, Mechanics, and F/A's.
The 4th biggie group (Dispatchers) came up with some doable language changes to work with so they have an agreement, what those terms are have not been released, but I am quite positive it's the 10% in pay the co. was asking for from all.

 

[swamt]

Quick update; Teamsters are now reporting they did not walk away from nego's as the co. may have indicated. Interesting but typical. SWA may be trying a tactical move to get other groups to jump onboard.

https://finance.yahoo.com/news/southwest-talks-buy-30-boeing-231621331.html

 

[robbedagain]

Swamt. Something doesn't make sense. SW looking to acquire 30 Max 737s (presumably the unpainted ones abandoned by some airlines yet they're asking all of your work groups for 10% paycuts. If their going to acquire them why ask for cuts?

 

[Rogallo]

An opportunity to acquire aircraft for pennies on the dollar???

They'll be set when the pandemic is history.

 

[swamt]

Swamt. Something doesn't make sense. SW looking to acquire 30 Max 737s (presumably the unpainted ones abandoned by some airlines yet they're asking all of your work groups for 10% pay cuts. If their going to acquire them why ask for cuts?

It may not make sense. But when it comes to saving millions, if not hundreds of millions overall, SWA will take advantage everytime.
And you are correct, with the recent expansions into new cities and routes, now making moves to acquire 30 more Maxes, and even bidding and winning for more slots in tight congested airports, it doesn't seem "fair" to all the employees for them to be asking for 10% when they are continuing to spend Billions and Billions more than planned for since we fell into this pandemic. With that said, SWA did say from the get go that they are hording billions (over 16 Billion now) in order to be able to pounce as quickly as possible for expansion post pandemic.
Just in comparo, AA is a much, much larger carrier than Southwest and they have 14.5 Billion saved up in $$$. Pretty sure SWA is ok with spending spree to gain all they can after getting out of pandemic era.

 

[jimntx]

I don't have the exact numbers but JR is correct, SWA doesn't have nowhere near the number of stores employees as do the other big 3. On top of that, can only speak for Dallas, but also hearing from our store employees they are short all over, in Big "D" they were approx 12-18 stores employees short with all kinds of O/T and even mandatory O/T for some time up until COVID pandemic hit.
If I get the total number of stores employees I will update.

Jim, Yes 42 being furloughed at 20 something per hour is not a whole lot of savings when looking at the big picture, but, by the time they use the same % of employees in all other groups with the 10% request it will add up big time, especially when you get to the big 3 groups, Pilots, Mechanics, and F/A's.
The 4th biggie group (Dispatchers) came up with some doable language changes to work with so they have an agreement, what those terms are have not been released, but I am quite positive it's the 10% in pay the co. was asking for from all.

I still don't see it. Let's be generous. Every one of those stores guys makes $100,000/year. If all are furloughed that reduces the salary expense by $4,200,000. My guess is that's not even 1 day's ticket sales at SWA. (Back to reality. We know they don't make $100,000) So, the actual salary reduction for furloughing the 42 is much less. Is the company going to put 42 stores people on the chopping block in order to bring some other work group to the bargaining table? I don't understand how and why that would work. If I were a stores guy who just got furloughed, I would hardly expect you to do much of anything other than extend your deepest sympathies to me.

 

[Old Azz Mechanic]

13 more days and more cards expiring. Yet AMFA still has not filed with the NMB. Hummmmm I wonder why. Let see if SWAAMT can ignore me or will I once again control him to answer. tick tock tic tock.
Or maybe AFMA IN MIAMI will come to his rescue Immmmmmmm waiting

 

[Rogallo]

13 more days and more cards expiring. Yet AMFA still has not filed with the NMB. Hummmmm I wonder why. Let see if SWAAMT can ignore me or will I once again control him to answer. tick tock tic tock.
Or maybe AFMA IN MIAMI will come to his rescue Immmmmmmm waiting

Looking for attention again I see. I got some time, I'll play.

Hi Dumb Azz, how are things at Briar Ridge today?

 

[dfw gen]

13 more days and more cards expiring. Yet AMFA still has not filed with the NMB. Hummmmm I wonder why. Let see if SWAAMT can ignore me or will I once again control him to answer. tick tock tic tock.
Or maybe AFMA IN MIAMI will come to his rescue Immmmmmmm waiting

How do you keep an as*hole in suspense?

 

[dfw gen]

Looking for attention again I see. I got some time, I'll play.

Hi Dumb Azz, how are things at Briar Ridge today?

I have a feeling we will be hearing a little less from old azz after today..

 

[Kev3188]

What's happening today?

EDIT: Disregard; I just read about the filing in another thread.

 

[dfw gen]

What's happening today?

EDIT: Disregard; I just read about the filing in another thread.

He should drift away....