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First off, I’m relatively certain that only Doug Parker has a formal employment contract among all of the “upper management” employees. The rest have other, less formal agreements regarding their compensation packages. Either way, I’ll address your question as if all of these executive do in fact have a contract.Lets not allow this question asked to be lost in the shuffle, Why is it that individuals who frown upon unions never have anything bad to say about upper management and THEIR CONTRACTS? Just curious and can't WAIT to hear the twist on this. PLEASE explain......
Well, just like workers had a choice to work for WN or US, the shareholders had a choice to invest their money in WN versus US too. So if WN is perfect, why doesn’t every airline worker in America go over to WN? Likewise, why doesn’t every capital investor just put their money in LUV and forget about LCC? After 35 years of WN running a perfect airline, why hasn’t every CEO and BOD attempted to re-craft their airline into another WN? No one is forcing an employee to stay at US under the threat of violence and no one is forcing shareholders to retain their stock in LCC so why do they stay? Do they think US will someday be as good or perhaps better than WN on all of the factors you listed? If not, why not make a change and move on to greener pastures? Starting at the bottom at WN has got to be superior to staying at the top of US, right?Looks like the Media Day pickets have had at least some impact. Now we have a major Doug Parker Kool Aide Drinker posting on the thread and from the tone & tenor of the post some in the Sandcastle clearly have a knot in their knickers.
Let's talk Shareholder Value for just a minute shall we? I knew you'd be OK with that! Since I'm not even close to the sharpest knife in the drawer I'll defer to the words of one Herbert Kelleher former CEO of the most profitable airline in US Aviation history!
Mr Kelleher: “You put your employees first. If you truly treat your employees with respect, they will treat your customers well, your customers will come back, and that’s what makes your shareholders happy. So there is no constituency at war with any other constituency. Ultimately, it’s shareholder value that you’re producing”
Apparently Doug Parker missed the memo from Herb Before all of the Doug Parker apologists run to their PC's blindly spouting "But WN is different, extend me the courtesy of beating you to the punch as you are correct that WN is indeed different in many many ways. For Example"
WN has been profitable Year over Year for 30 plus years
WN has one of, if not the highest percentage of unionized workers
WN has had sustained growth over the last 35 years
WN has an admirable record for customer service
WN has an admirable record for on time performance
WN has an admirable record for delivering bags where they're supposed to go.
WN has an admirable record for consistent performance over a 35 year period
Now in contrast let's look at some of the "high" points at US:
US Christmas Meltdown in PHL
HP nearly being grounded by the FAA
US/HP net bankruptcies = 3, WN = 0
US/HP- Pilot contract, 5 years and counting
US/HP- "res" Migration debacle
US/HP - YEARS spent at or near the bottom of the DOT stats
US/HP - lowest pay scale of any major US carrier.
This is like a tale of 2 cities and I know I left a bunch of stuff out. US only began improving when they renegotiated Doug Parker's and the Senior Staff's contracts to include incentives for on time performance and other criteria. Why do you think customers get left at the gate from misconnects? Because Dougie needs to hit his bonus gates is why.
The only reason that Doug Parker isn't regarded at the worst CEO in aviation history by Customers and Labor is because of some guy named Lorenzo.
Union members who participate in these events likely have no idea how the average American views their actions. Most Americans don’t favor unions, picketing, or the kind of mob-rule antics that interfere with the unrestrained flow of commerce in what is supposed to be a free society. Even in the NFL situation the players aren’t faring too well in the court of public opinion. Most fans just want to know that the games will be played by the mega-millionaire players who ought to show some gratitude to their fans by going to work every day just like most responsible Americans do. Even if they don’t study the economics, most Americans know intuitively that unions often have a very negative effect on the economy which, in turn, has a negative effect on them. Below are some excerpts from The Concise Encyclopedia of Economics (M. Reynolds) which support the average American’s innate understanding of the detrimental effects unions have:
Economists who study unions—including some who are avowedly prounion—analyze them as CARTELS that raise wages above competitive levels by restricting the SUPPLY of laborSource: http://www.econlib.org/library/Enc/LaborUnions.html
Thus, unions are a major anticompetitive force in labor markets. Their gains come at the expense of consumers, nonunion workers, the jobless, taxpayers, and owners of CORPORATIONS.
Unions’ power to fix high prices for their members’ labor rests on legal privileges and immunities that they get from government, both by statute and by nonenforcement of other laws. The purpose of these legal privileges is to restrict others from working for lower wages.
Union officials can force compulsory union dues from employees…as a condition for keeping their jobs. Unions often use these funds for political purposes…unrelated to collective bargaining or to employee grievances, despite the illegality of this under federal law.
FRIEDRICH A. HAYEK summed it up as follows: “We have now reached a state where [unions] have become uniquely privileged institutions to which the general rules of law do not apply”
Labor unions cannot prosper in a competitive environment. Like other successful cartels, they depend on government patronage and protection.
[However], the silent, steady forces of the marketplace continually undermine labor cartels.
According to a Louis Harris poll commissioned by the AFLCIO in 1984, only one in three U.S. employees would vote for union representation in a secret ballot election.
The Harris poll found, as have other surveys, that nonunion employees are more satisfied than union workers with job security, recognition of job performance, and participation in decisions that affect their jobs.
[There is a] deep, permanent conflict between union members and workers in general that inevitably arises when union-represented employees are paid monopoly prices for their services.
Well, just like workers had a choice to work for WN or US, the shareholders had a choice to invest their money in WN versus US too. So if WN is perfect, why doesn’t every airline worker in America go over to WN? Likewise, why doesn’t every capital investor just put their money in LUV and forget about LCC? After 35 years of WN running a perfect airline, why hasn’t every CEO and BOD attempted to re-craft their airline into another WN? No one is forcing an employee to stay at US under the threat of violence and no one is forcing shareholders to retain their stock in LCC so why do they stay? Do they think US will someday be as good or perhaps better than WN on all of the factors you listed? If not, why not make a change and move on to greener pastures? Starting at the bottom at WN has got to be superior to staying at the top of US, right?
There are many possible answers here but in the end none of them really matter if someone has given up hope in the company and its management team. Certainly the stockholders would have a much easier time divorcing themselves from LCC than the employees but they remain, and even more profoundly retain the services of the executive leadership even though you regard Doug as the worst CEO in the business. Doug’s going on ten years as CEO without the slightest hint that the stockholders he reports to want to make a change. If you are correct in your assessment, then why do the stockholders keep him in as Chairman and CEO?
My answer is simple. They believe that he is the best person to run this airline and to give them the best possible chance to get a good return on their investment. If they thought someone was better suited to the task, then I see no reason why a change wouldn’t be made. CEOs have frequently been shuffled at AWA and legacy US but Doug remains now as the longest-running CEO at a major airline among his peers. You may or may not be the sharpest knife in the drawer, but I trust you are more than capable of hypothesizing why Doug hasn’t been replaced by the BOD/shareholders after all this time if he is as bad as you say.
No way, jose. As far as the pilot and f/a negotiations go, doug is holding off as loooooong as possible because he knows that any contract signed will be more expensive...so why not just drag it out and reap the rewards.If the FA counterproposal was acceptable to the shareholders and the BOD, you would have your contract by now - period.
How can anyone beleive you ? i'm in a union , and our contract is coming up for discussion .. i can tell you point blank no one in my work group would endorse a strike ...i think it's safe to say the same goes for every work group ...Sure the reserves MIGHT be angry enough to take some sort of action , but then again they might not ... it's one thing for the junior people to stick their necks out , but they won't do it alone ... and i simply can't see the senior workers supporting the junior workers , not when it could jepordize their jobs ...
The economy has everyone terrfied , decent employment is almost impossible to find unless you "know" someone , and everyone is aware of this ..
Uh,
Wow!
1. Wrong; I’m not who you think I am.Lame Answers from A member of a Lame management team. Investors generally speaking will take Profits over people EVERY DAY! Parker in addition to being a convicted drunk is yet another example of the spreadheet jockey, MBA, run it by the metrics CEO that I feel is one of the reasons for the economic decline of the USA. Look around and you see far more Travis Christ's than you do Herb Kelleher's. Here is another interesting tidbit from the interview with Kelleher.
S+B: Virtually all of the major U.S. airlines have tried to copy you at some point. None of them has come remotely close. What’s so hard? It looks like it ought to be a pretty simple model.
KELLEHER: We’ve had many airlines that professed that they were going to be low-fare carriers. There’s only one problem: They had high costs. You can do that, but Chapter 11 is your destiny.
I think the difficulty for them is the cultural aspect of it. That cannot be duplicated. One of the things that demonstrates the power of people is when the United Shuttle took out after us in Oakland. They had all the advantages. I mean, they had first-class seats for those who don’t want to fly anything but first class. They had a global frequent flyer program, which we did not have. They probably spent $25 million or $30 million on their advertising campaign. I probably have something like a thousand letters at my office that tell you why they finally receded from Oakland. Those letters say, “Herb, I tried them, but I just like your people more, so I’m back.” Don’t ever doubt, in the customer service business, the importance of people and their attitudes.
Truth is this portion of the quote, Don’t ever doubt, in the customer service business, the importance of people and their attitudes. Well Boy & Girl's it's just like Oprah said, "When someone shows you who they are, BELIEVE THEM" Doug Parker, has through Al Hemingway and the rest of his Labor Relations Team shown us in living color just exactly what value he places on his people. All an employee need do to confirm my theory is look at his pay stub and then compare and contrast it to a counterpart at another major carrier.
As a customer all we need do is compare the list of fees charged by WN versus US to gain a pretty clear picture as to EXACTLY how Parker views us.
When you have the lowest wage rates of the majors and yet possess one of, if not the highest CASM's in the industry it reflects upon the Management Team and their ability to lead and manage. If you have a F/C with the fewest amenities compared to your competition it also sheds light on how the Management Team views it's best customers. Same goes for fees. If after having the lowest wages, lowest level of amenities you still can't gen a profit then what indeed does that say about Parker, Kirby, Isom? What does it say about the BOB?
If the workers who took care of me over the last ten years say to the management team that has screwed both of us "Full Pay to the last Day" This time I'll join them on the picket line. Not like before when I cautioned them to live to fight another day. It's time to pay'em or close the M-F'ing doors and I'm to the point where I don't care which it is.
Callaway,Union members who participate in these events likely have no idea how the average American views their actions. Most Americans don’t favor unions, picketing, or the kind of mob-rule antics that interfere with the unrestrained flow of commerce in what is supposed to be a free society. Even in the NFL situation the players aren’t faring too well in the court of public opinion. Most fans just want to know that the games will be played by the mega-millionaire players who ought to show some gratitude to their fans by going to work every day just like most responsible Americans do. Even if they don’t study the economics, most Americans know intuitively that unions often have a very negative effect on the economy which, in turn, has a negative effect on them. Below are some excerpts from The Concise Encyclopedia of Economics (M. Reynolds) which support the average American’s innate understanding of the detrimental effects unions have:
Economists who study unions—including some who are avowedly prounion—analyze them as CARTELS that raise wages above competitive levels by restricting the SUPPLY of laborSource: http://www.econlib.org/library/Enc/LaborUnions.html
Thus, unions are a major anticompetitive force in labor markets. Their gains come at the expense of consumers, nonunion workers, the jobless, taxpayers, and owners of CORPORATIONS.
Unions’ power to fix high prices for their members’ labor rests on legal privileges and immunities that they get from government, both by statute and by nonenforcement of other laws. The purpose of these legal privileges is to restrict others from working for lower wages.
Union officials can force compulsory union dues from employees…as a condition for keeping their jobs. Unions often use these funds for political purposes…unrelated to collective bargaining or to employee grievances, despite the illegality of this under federal law.
FRIEDRICH A. HAYEK summed it up as follows: “We have now reached a state where [unions] have become uniquely privileged institutions to which the general rules of law do not apply”
Labor unions cannot prosper in a competitive environment. Like other successful cartels, they depend on government patronage and protection.
[However], the silent, steady forces of the marketplace continually undermine labor cartels.
According to a Louis Harris poll commissioned by the AFLCIO in 1984, only one in three U.S. employees would vote for union representation in a secret ballot election.
The Harris poll found, as have other surveys, that nonunion employees are more satisfied than union workers with job security, recognition of job performance, and participation in decisions that affect their jobs.
[There is a] deep, permanent conflict between union members and workers in general that inevitably arises when union-represented employees are paid monopoly prices for their services.