Financial services, not exactly "friends of labor" the less they pay us the more you can rape them. Plus as a passenger you may figure you get cheaper fares.
Bankruptcy
- Thread starter Bob Owens
- Start date
- Joined
- Aug 20, 2002
- Messages
- 7,319
- Reaction score
- 1,555
I hope that you dress nice, for your trips.
What work rules and changes in productivity would you like to see?
jimntx
Veteran
Financial services...those experts that brought us the latest recession and collapse of the housing market. Perhaps they could work a deal where they loan AMR a whole bunch of money with no collateral--after all we ain't even got cookie doilies left that ain't hocked. Then they can get the taxpayers via the government to pick up the tab. I'm sure that he works for a "too big to fail" financial services company.
- Joined
- Aug 20, 2002
- Messages
- 7,319
- Reaction score
- 1,555
Did you see the movie?
You are correct, by giving the company a loan, is like giving the banks a loan that the taxpayers are on the hook for, only the taxpayer in this case is the employees.
My employer played an instrumental role in AMRs restructuring and has continued to provide the company liquidity.
Josh
- Joined
- Aug 20, 2002
- Messages
- 7,319
- Reaction score
- 1,555
Without divulging the name of the company, can you relate as to the services they provide?
WorldTraveler
Corn Field
- Joined
- Dec 5, 2003
- Messages
- 21,709
- Reaction score
- 10,662
with all due respect, whatever relationships your employer has with AMR doesn't include any requirement or even necessity for you to "help" them here. You, and everyone else here, act as private citizens in our roles here even though we (most) still have the desire to see AA and its employees both succeed.
"Continues to provide the company liquidity"
He says it like it's a charity. If you recall back in 2003 the company claimed that if they went below $1 billion in cash that they would be bankrupt, this was because of a covenant. The covenant was on a loan for $800 million. So in other words AA had to have $1 billion in cash to borrow and pay interest on $800 million. Now the figure is up to $3 billion.
Banks make money by lending money. They don't really make a product or provide a service, other than transferring numbers. By saddling companies with requirements that drive up their debt they drive up their profits. So by placing covenants that tie up a companies cash they benefit because it makes the company borrow more than it really needs to borrow, and it transfers profits from the carrier to the banks by doing so.
Like I said, they have an interest in getting us to agree to work for less. What the eggheads forget is that when morale plummets so does the quality of your product. With high load factors and diminished supply quality doesn't really matter so while Josh may complain as a passenger he knows, as the giant leach that his business is, that's not important right now. My guess is his employer provides these services to other carriers as well.
AA and other carriers have driven down labor costs,leaving companies such as Josh's more room to take profits out of the airlines. It really doesn't matter if the carrier ever shows a profit as long as they are making payments. Remember that, "as long as they are making payments". In fact it's better that they don't show profits, because once a carrier starts showing profits there is no longer a crisis, and the crisis is needed to keep employee demands low. If a carrier starts showing profits it increases the risk of a strike, and that means no payments. By keeping AA in the red it helps keep wages down at other carriers as well so from Josh's perspective low wages for us means lower ticket prices and more money going to his employer and more in his paycheck, a win win for him. Now you know why he is here.
jimntx
Veteran
The covenants assure that AMR will keep large amounts of idle cash in his financial institution where it draws 0.00000001 interest per day. Nothing like having large amounts of cash that you can loan out at 15-20% interest, and it only costs you $0.75 per $1000 to obtain that cash.
strikeforce
Veteran
- Joined
- Jan 18, 2011
- Messages
- 1,224
- Reaction score
- 253
And, as long as AMR......really AA, continues to show 80-85% load factors, and bring in 20-25B in revenue....your company will continue to increase the debt problem at AA!!! Why don't you admit that you work for a loan shark, instead of calling it a "financial institution"??????
- Joined
- Aug 20, 2002
- Messages
- 7,319
- Reaction score
- 1,555
Yes, where are your company offices, the 99% can Occupy them........
TWU informer
Veteran
- Joined
- Nov 4, 2003
- Messages
- 7,550
- Reaction score
- 3,731
Now I finally get it.
You are employed by one of those consulting firms that believes they have made a positive diference.
BAHAHHAHAHAHA
Jacobin777
Senior
I don't see him crying about being hosed over by management while making $ millions in bonuses.
strikeforce
Veteran
- Joined
- Jan 18, 2011
- Messages
- 1,224
- Reaction score
- 253
that's because he's not getting HOSED by his management or union!!!!I don't see him crying about being hosed over by management while making $ millions in bonuses.
his firm's management makes millions hosing companies that ultimately end up in BK!!!!
