Unions Oppose Executive Incentive Plan At Usair

[longing4piedmont]

Let's not compare US Airways and the situation in New Orleans. Only one is still under water.

The employees that you speak of did a fantastic job. Through all the stress, the redundancies, the pay cuts, the benefit cuts. I doubt I would have stayed if in their shoes. But you missed the point - it's business. You don't make a profit as a company, you die. Stop taking it personally, it appers the unionized folks have moved on, for the most part.

[post="300622"][/post]​

Why not? Both plans were equally effective. In both cases it was money down a rat hole. And yes, US is still under water.

And BTW, not a chance on the second suggestion. It has become personal to me and many others, not to mention the over 30,000 employees that have lost their jobs while your buddies want $12,000,000. Best you and your CCY buddies can hope for is that I walk in front of a bus.

 

[BoeingBoy]

Why is that? There are alot of people with intimate knowledge of US Airways that don't work there (and not just the bankruptcy lawyers). And living in a city where US Airways doesn't have a huge presence, I don't often get the ability to fly them.

It's a prop by the way, hanging in the 8th floor lobby.

[post="300617"][/post]​

Let me rephrase, then. If not an employee or significant customer, you have an intimate relationship (& I don't mean in the sexual sense) with CCY.

To quote you....

Labor is a product, like tires and jet fuel. If you offer your product at a higher cost than can be offered by another provider, then you don't get the work (or lose what you have.)

[post="298196"][/post]​

Senior management is just labor wearing a suit. As you say, if the product they offer can be supplied at lower cost (or not at extra cost) by someone else, they lose. Are you saying that during the transition period, when decisions at the senior executive level will be made in Tempe, there is no one who can do their job without demanding a share of $12 million? That there is no one who can do their job without demanding a full paycheck (including bonus) for 2 years after leaving the job?

If there is someone, these senior execs don't deserve a dime - as you said.....

Jim

 

[qwerty]

If there is someone, these senior execs don't deserve a dime - as you said.....

Jim




I agree with you 110%. The officers at US Airways are as replaceable as the fuel vendor. And many of them should be replaced, and soon will be. My point is this: the retention plan is the most economical way to keep the company running for a few months. I am sure the BOD looked at other options.

 

[qwerty]

And sorry L4P, not me on your Dallas flight.

NW seems to being playing by a slightly different book, but it's working well. It's business.

 

[BoeingBoy]

My point is this: the retention plan is the most economical way to keep the company running for a few months. I am sure the BOD looked at other options.

[post="300644"][/post]​

Somehow, I suspect that the BOD decision was just "business as usual". Most BOD's approve pretty much whatever the CEO wants, hence the rising tide of shareholder complaints about BOD accountability. Of course, I'm sure someone said much the same as you about the senior execs at Worldcom, Enron, etc. After all, the BOD approved their lavish packages, too.

As for this being the most economical, I'd have to see some proof of that. For starters, how about a list of senior execs who will leave before they're no longer "needed" without this retention package, along with the itemized costs that would be incurred by not having those specific individuals around.

Jim

 

[hp_fa]

My point is this: the retention plan is the most economical way to keep the company running for a few months. I am sure the BOD looked at other options.

[post="300644"][/post]​

Says who?

 

[longing4piedmont]

And sorry L4P, not me on your Dallas flight.

NW seems to being playing by a slightly different book, but it's working well. It's business.

[post="300648"][/post]​

And how is the author doing? Is he enjoying his new role at NWA? We both know who I'm talking about, don't we?

It may be business as you know it. However there are two ways to make a profit. Increase revenue or cut cost. Why is it that none of you MBA types know how to GROW a business?

 

[ClueByFour]

The executives deserve compensation for their hard work and dedication during this transitional period. You can't operate an airline without executives, especially when you are completing a merger. The unions should concentrate on their own internal matters.

[post="300443"][/post]​

What?

Two bankruptcies, the PHL fiasco, etc, etc. US would be better off with nobody higher than a department head on the payroll at this point.

Ditch the problems now (since it's clear by who has been "assumed" by HP where the talent is lacking).

Enjoy the job search .

 

[ClueByFour]

Let's not compare US Airways and the situation in New Orleans. Only one is still under water.

Nope. US is still (to this day) losing money. Soon, "LCC" will be losing money. Parker is going to try to pull the Titanic with a rowboat--he, unlike the denizens at CCY, may be able to pull that off.

The employees that you speak of did a fantastic job. Through all the stress, the redundancies, the pay cuts, the benefit cuts. I doubt I would have stayed if in their shoes.

They sold a sinking ship at a fire sale price. The acumen--it's unreal!!

If you read the filings between the lines, the hardest working guy in CCY (and arguably, the only one with a clue) is Luth--and he's a hired gun.

NW seems to being playing by a slightly different book, but it's working well. It's business.

Yeah. Now NW is bankrupt, too.

Sooner or later (as the founding guest speaker at the US Pilots' Wives club found out), all the legacies and the inherit inbred "executive" force are going to tank, and then it's off to the overseas market to tank those airlines.

Really. The only person who has spent any significant time at CCY who has shown any kind of acumen was Luth. A hired gun. An outside guy.

 

[qwerty]

Jim and Bob:

Sorry I am not close enough to the situation to have the specifics you asked for. I speak in general terms of course. I do agree that not everyone in the executive suite is pulling his/her weight, the examples you shared make that frighteningly obvious.

I can't put a dollar figure on what their retention is worth, but in general I believe the plan is a good one, one that is relatively cheap and keeps the ship afloat until HP can right it. History may prove me wrong but I don't think you can make a fair comparisson of US Airways' last few years and those of Enron. Let's give a little credit to the board that brought them back from the dead.

 

[qwerty]

And do you think Luth would work for what anyone up there makes?

Is US better off right now, than a year ago? Two years ago? 3?

And yes, NW started down a road that will make them a stronger company (or part of a stronger company). The first step was to cut costs and send a message to labor that it was a neccessary evil. I'd ask you to go see if the AMFA got the message, but that's too easy - go ask the Flight Attendents.

Southwest may be next, after CO, Gary Kelley already admitted as much.

 

[Schatzee]

I am neither an employee of US Airways/America West nor a significant customer.

Is that you Dave hiding out from your Gate Gourmet buddies? :bleh:

You seem to be very familiar with things to not have been associated with USAirways........Me doth think I smell a rat :cop:

 

[usair_begins_with_u]

Do you know what's hanging on the wall as you step off the elevators on the 8th floor?

Is that propeller still there? I swore one night I almost carved my intials in that thing...

 

[PITbull]

The f/as at NW are asking to join AFA...go ask YOUR source.

Thats right...come to mama...

 

[HPGUY]

The company has to give the current management something or too many of them will leave before their positions are no longer needed. AmericaWest management and the senior offices will already have their hands full. Bonuses will be a lot cheaper than out sourcing.