Open Letter To Mr. Lakefield

[javaboy]

nice letter, wrong question


mr lakefield,
in the decade before you or mr bronner ever got close to the aviation business. the 58000 employees of UsAir gave up 25% wages / benefits "to save the company",= jobs lost. then to avoid bankruptcy filing again USAirways employees took another pay cut 48hrs later the company filed = jobs lost. In bankruptcy additional cuts were obtained to prevent loss of pensionso the company took that too. now amazingly management asks again for cash. the question is what are you (mgmt) going to do differently than the previous times as a banker you can appreciate the question what is the business plan sir? simply asking for give backs every time oil rises or SWA has a sale is no plan.
so over the years this group has gotten 25% and 17% of the company todate the same equity could have been achieved by every employee sending in a check for 5000.00. which is far far less than actually taken thus far. tell me why this company's current team will manage it better than the last 5. what are you doing to RAISE revenue, attract more customers, improve the product and BUILD BRAND?

the spotlight needs to be turned outward not inward in search on increasing revenue not cutting costs.

i am willing to help. track me down and i will be more than happy to present a winning plan against lccs,building brand,increasing market share , lowering costs without a reduction in current W2 wages or head count...

 

[seeking the truth]

Ktflyhome,

The feelings and frustrations you feel are felt amongst all groups of the rank and file. The company knows how to play the game. Not that the "game" isn't real and some change is obviously needed ( at all levels starting from the top down not bottom up ) but the mind "game" leaving everyone guessing trying to soften the mind, a sense of hopelessness. Many good employees have been forced out the door. Many have packed it in and said enogh already. Both of these trends are far from over. That is why the company won't give employment numbers.

The company, in my opinion hasn't been specific on the next round of layoffs for a reason. Every less employee not only reduces wages to the company but less insurance, vacation, , pension, etc. costs also. The unions see revenue for themselves through continued membership. If the company fails, naturally there won't be any revenue coming in for the unions. The unions are stuck between a rock and a hard spot, don't talk possible failure. Talk and then have to sell what has been talked about. ( Really don't want to use the word negotiated because that implies give and take)

So at some point lower wages and benefits will be talked about, but "real" employment numbers will be elusive. The agreements will need to be sold (assuming of course this scenario is outside bankruptcy) to each group. Look at the prior contracts voted on, and how things changed after the fact. The job loss and the companies different interpretations of each groups contract after they were signed, still ongoing to this day in the courts and grievances filed.

At some point consolidation in this industry will happen. Not because Siegel , Wolf, wall street gurus say. Money and history says so. The weak will perish. The players left (anybodys guess at this point) will team up to lower costs even further by incresing their networks and being able to layoff employees because of the redundicies in the new merged company and continued outsourcing of jobs. That's
a whole other topic in itself.

The point is, if the company survives it will be smaller employee wise, with lower personnel costs and more easily fit for a takeover. Then the next round of cost cutting will take place for the employees who are still left.