No Flight Attendant Buyout Planned

[jimntx]

For those who never read anything put out by the company because they get all their "facts" about Flight Service from Facebook...the following quote is from Hector's Perspective, a bi-weekly communication to all flight attendants at AA from Hector Adler, the Vice-President of Flight Service.
 
[SIZE=10pt]"Flight attendant staffing [/SIZE]
[SIZE=10pt]I want to dispel a rumor I’m hearing on the line about the company offering a potential buyout program to flight attendants. This is not only inaccurate but is also contrary to the staffing plans underway. Buyout programs are typically offered when the airline is faced with an over-staffing situation which could potentially lead to involuntary furloughs. We actually need to hire new flight attendants to meet our future flying needs; therefore, a buyout program would not be appropriate in our current operational environment."[/SIZE]
 
[SIZE=13.3333px]The buyout rumor persists despite the company announcing that they plan to hire additional flight attendants next year.  I've forgotten the exact number, but IIRC it was 2000 new hires next year.  Now if there is a severe downturn in the economy, and passenger loads and earnings drop drastically to the point that layoffs are needed, well, then maybe, perhaps, could be a buyout offered.[/SIZE]

 

[IORFA]

But, But, But............United.........But, But, But...........the last one was too fast!..........But,But, But................I wasn't ready...................that's not fair.................. People will still not believe Hector and they will still think one is coming. No matter how much sense it doesn't make!

 

[WorldTraveler]

how does the VP of IFS not know the number of FAs that are planned to be hired in the next year with facility that should roll off of his tongue?

 

[jimntx]

But, But, But............United.........But, But, But...........the last one was too fast!..........But,But, But................I wasn't ready...................that's not fair.................. People will still not believe Hector and they will still think one is coming. No matter how much sense it doesn't make!

You forgot "But,but, my friend who used to do union work posted it on FB that a source at APFA told her that the buyout would be $100,000 for people with over 30 years."

 

[AirLUVer]

how does the VP of IFS not know the number of FAs that are planned to be hired in the next year with facility that should roll off of his tongue?

Maybe if you had better comprehensive reading skills, you would see that the first part of Jim's post was a direct quote. The second paragraph (the one without quotation marks) was Jim's comment regarding the direct quote.

 

[jcw]

Anything to trash AA

There are many times individuals have wishful thinking - there are probably folks wanting a buy out to help push themselves into retirement

 

[Roadking5560]

Since when did it become shameful for someone to want to better themselves in retirement by getting something that may be offered to them by a company?  If you're not management you certainly should be.

 

[FrugalFlyerv2.0]

how does the VP of IFS not know the number of FAs that are planned to be hired in the next year with facility that should roll off of his tongue?

 
 

Maybe if you had better comprehensive reading skills, you would see that the first part of Jim's post was a direct quote. The second paragraph (the one without quotation marks) was Jim's comment regarding the direct quote.

 
 

 

[jcw]

Since when did it become shameful for someone to want to better themselves in retirement by getting something that may be offered to them by a company?  If you're not management you certainly should be.

There isn't - it's the best way to get into retirement

 

[eolesen]

Since when did it become shameful for someone to want to better themselves in retirement by getting something that may be offered to them by a company?  If you're not management you certainly should be.

There isn't - it's the best way to get into retirement

It's not shameful to want more for your retirement. What's shameful is expecting the company to be the one who has to provide it...

You are responsible for your retirement. Not the government, not your employer. You.

If you're relying only on Social Security and your pension, it's pretty clear you won't have much of a retirement. What you'll have is a string of new employers after you can't physically continue to fly/work an airline job anymore.

 

[jimntx]

Since when did it become shameful for someone to want to better themselves in retirement by getting something that may be offered to them by a company?  If you're not management you certainly should be.

No one ever said it was (and btw only WT is allowed to impugn motives to others.  Only he knows the inner workings of everyone else's brains).  What is shameful is starting a rumor that there will definitely be a buyout, and the rumor is not in any way based on reality.  Did you not notice my original post where I said that this thread is for those AA f/as who never read anything published by the company, but take anything posted to Facebook as God's truth.
 
And, as Eolesen pointed out, no Social Security and no pension were ever intended to be your sole source of income in retirement.  If you haven't saved a dime for your retirement, then it's going to be tough to keep a roof over your head and eat.

 

[Roadking5560]

The key word in my comment was "offered".  Something for nothing is not my cup of tea either.

 

[kirkpatrick]

Buyouts can benefit both sides.  FAs get an incentive to retire if they're close to that age anyway and are thinking about leaving soon, and the company gets to hire new people at less than half the pay.  Younger workers also use much less insurance.  Middle seniority people move up to hold better trips.
 
But the company has to put up a chunk of money up front.  The 2250 who took the first buyout a couple of years back cost the company 90 million in up front money, and it could take years to recoup.
 
The company won't offer a buyout unless they think it benefits them, and the fact that they've offered two recently shows that at least some of the time it does.
 
MK

 

[jimntx]

 
 
But the company has to put up a chunk of money up front.  The 2250 who took the first buyout a couple of years back cost the company 90 million in up front money, and it could take years to recoup.
 
 
MK

Actually, it doesn't really take that long.  If you consider only the difference (ignoring other savings such as reduction in medical costs, etc)  between hourly pay of Top of Scale and new hire flying.  Assume 2000 f/as leaving with a $90 million buyout, and an equal number of new hires. (Hourly rates of pay are approximate.)
 
TOS= $55/hr.  New hire=$20/hr.  Difference=$35/hr.
 
$35/hr X 2000 = $70,000 saved for every hour flown by new hires instead of TOS f/as.  Average hours flown/month/fa (again, approximate) =  75.  Savings/month for flying by new hires instead of TOS = $70,000 x 75 = $5, 250,000.  $90,000,000 buyout /$5,250,000 = 17.14 months to amortize buyout.  And, this takes no account for savings on Purser/Lead f/a pay, etc.
 
But, as you say, management has to see an advantage for them before buyouts are considered.

 

[FWAAA]

The $350 million allocated for the new management HQ digs could fund $100k buyouts for 3,500 FAs, enabling AA to hire even more new low-cost FAs. FA buyout instead of new palace at HQ would require that management tolerate the ancient buildings they currently occupy, but I'm sure they could do it. Until they were retired recently, some of the MD-80s were as old as the current HQ.