Management's half of the equation
Many posters have done a fine job parsing the webcast - I won't regurgitate them here. My view on what it means is, management (and I use that term to include W&G) had a plan for U, and they will NOT deviate from it. That plan has never been in the employee's interests, unless you're interested in working for express pay for the rest of your career. COULD they have devised a plan employees would have supported? Sure, but that would have entailed NOT driving LABOR COSTS as low as possible. Driving those costs down (and hoping that notion spreads to other carriers/industries) IS THE PLAN. HAS BEEN THE PLAN. WILL BE THE PLAN.
If you pay close attention, management admits as much. For 5 years, employees have offered to embrace WN's contracts, only to have management offer feeble excuses why we cannot be like WN. Why not? U employees work for less than WN (U agents worked for less than WN agents PRIOR to BK). U employees turn out DOT numbers as well or better than WN. U employees are doing their part; it appears what's missing at U is a WN-style management and business plan.
Another reason I think losses are being managed. How, at this post BK stage of the game, are there STILL 2 cents in CASM's that managment has the discretion and ability to drive out? Why didn't they handle this last year? During BK? Before BK? And if not now, when? Of course the answer to that is when labor is fully subjugated.
In short, U, for years, has pointed to a succession of reasons why they cannot turn a profit (hurricanes, snow, ice storms, fuel prices, and now, LCC's)as if these events don't impact other carriers. I believe this has been done to create a climate of fear and reduced expectations among the employees.
Regarding concessions. Did dave convince anyone the cuts would succeed? He acts, as if the mere matching of WN CASM's, is game, set and match to U. I beg to differ.
NOTE TO MANAGEMENT: INSIGHT INTO WN DECISIONS NOW OFFERED FREE OF CHARGE.
What is to stop WN, sitting on a multi-billion dollar war chest, from;
a) pricing U out of the market, or
B) lowering their CASM's to 5 or 4 cents? Would the new sacrifices U employees make be enough for U to weather such an assault?
I thought not.
Conclusion: Management is hell-bent on this course of action.
Now, to the union side of the fence.
First, the leadership.
I am amused by the hairy-chested capitalists, who on the one hand, tout market forces on this board, and then deny those forces are at work within the union leadership. Do you really think the IAM wants to lose 10,000 dues paying members? Doesn't Adam Smith's "invisible hand" apply to them? dave has put these folks in a vise. In order NOT to lose those members, the leadership is going to have to, on the one hand, vent the anger and frustration, and on the other, sell this pig. They will be the ultimate bad guy in this deal.
Now, the membership.
Here's the nice part about being in the union. Management, cannot of themselves, impose their wants. Neither can your union leadership.
Don't do what dave wants. Don't do what Chip wants. Don't do what your AGC or LEC/MEC wants. Do what is in YOUR interests.
Many posters have done a fine job parsing the webcast - I won't regurgitate them here. My view on what it means is, management (and I use that term to include W&G) had a plan for U, and they will NOT deviate from it. That plan has never been in the employee's interests, unless you're interested in working for express pay for the rest of your career. COULD they have devised a plan employees would have supported? Sure, but that would have entailed NOT driving LABOR COSTS as low as possible. Driving those costs down (and hoping that notion spreads to other carriers/industries) IS THE PLAN. HAS BEEN THE PLAN. WILL BE THE PLAN.
If you pay close attention, management admits as much. For 5 years, employees have offered to embrace WN's contracts, only to have management offer feeble excuses why we cannot be like WN. Why not? U employees work for less than WN (U agents worked for less than WN agents PRIOR to BK). U employees turn out DOT numbers as well or better than WN. U employees are doing their part; it appears what's missing at U is a WN-style management and business plan.
Another reason I think losses are being managed. How, at this post BK stage of the game, are there STILL 2 cents in CASM's that managment has the discretion and ability to drive out? Why didn't they handle this last year? During BK? Before BK? And if not now, when? Of course the answer to that is when labor is fully subjugated.
In short, U, for years, has pointed to a succession of reasons why they cannot turn a profit (hurricanes, snow, ice storms, fuel prices, and now, LCC's)as if these events don't impact other carriers. I believe this has been done to create a climate of fear and reduced expectations among the employees.
Regarding concessions. Did dave convince anyone the cuts would succeed? He acts, as if the mere matching of WN CASM's, is game, set and match to U. I beg to differ.
NOTE TO MANAGEMENT: INSIGHT INTO WN DECISIONS NOW OFFERED FREE OF CHARGE.
What is to stop WN, sitting on a multi-billion dollar war chest, from;
a) pricing U out of the market, or
B) lowering their CASM's to 5 or 4 cents? Would the new sacrifices U employees make be enough for U to weather such an assault?
I thought not.
Conclusion: Management is hell-bent on this course of action.
Now, to the union side of the fence.
First, the leadership.
I am amused by the hairy-chested capitalists, who on the one hand, tout market forces on this board, and then deny those forces are at work within the union leadership. Do you really think the IAM wants to lose 10,000 dues paying members? Doesn't Adam Smith's "invisible hand" apply to them? dave has put these folks in a vise. In order NOT to lose those members, the leadership is going to have to, on the one hand, vent the anger and frustration, and on the other, sell this pig. They will be the ultimate bad guy in this deal.
Now, the membership.
Here's the nice part about being in the union. Management, cannot of themselves, impose their wants. Neither can your union leadership.
Don't do what dave wants. Don't do what Chip wants. Don't do what your AGC or LEC/MEC wants. Do what is in YOUR interests.
