flx757
I gotta have more cowbell
- Joined
- Mar 6, 2002
- Posts
- 1,356
While you're on the subject of "management"....It seems the "agitation" might extend across the board. However, my first reaction is this is just another card to play in the negotiations game.
Alaska to reduce management ranks
Voluntary severance incentive program
looks to trim up to 150 people
Posted August 20, 2004
Citing the need to restructure management as another step to cut costs, CEO Bill Ayer today announced a voluntary severance incentive (VSI) program to reduce Alaska’s management corps.
“The reasons for the reorganization are to speed decision-making and to improve communication and accountability,” Ayer wrote in a memo to all management employees. “The aim is to improve execution by eliminating some of the layers of management that served us well in a different era, but unfortunately don’t meet the needs of today’s tough environment.”
Ayer estimated that between 100 and 150 people would depart once the program is completed. He estimated the savings at between $5 million and $10 million a year.
“Since announcing our Alaska 2010 plan last year, our focus on reducing costs excluded reductions in employees,” Ayer said. “Now we are changing that. We’re paring management people in a way that tries to respect the contributions they have made.”
Ayer replied “yes” when asked if layoffs might follow should not enough managers volunteer to accept the severance package now open to them. According to Dennis Hamel, vice president, employee services, there are 1,674 active management employees at Alaska.
Dubbed “VSI” by Employee Services, the program is a one-time only offer that will close September 7. Key features of the VSI program are two weeks of pay for each year of service; a bonus of between $3,000 and $15,000 depending on length of service; one year of company paid healthcare; and, travel benefits for the employee and eligible dependents.
“We recognize the key role that employees have played over the years and, for those who leave, we want to make the transition as smooth as possible,” Ayer said.
Ayer’s memo included this sobering assessment: “Alaska is not immune from the impacts that are redefining our industry. We’ve been unprofitable for four consecutive years. Fuel prices are skyrocketing, fare levels remain stagnant and competition is intensifying.
“Since 9/11,” he continued, “and especially since we formed the Alaska 2010 plan, we’ve looked—and will continue to look—at every possible way to strengthen this airline to survive this unprecedented period. Because the major carriers are restructuring and low-cost carriers are operating opportunistically and aggressively, we would be irresponsible not to take strong action.”
Ayer ended the memo citing the changes as “a window of opportunity to shape our own future” by meeting the goals set forth in the Alaska 2010 plan. “We owe nothing less to our employees, our customers and our shareholders,” he said.
Alaska to reduce management ranks
Voluntary severance incentive program
looks to trim up to 150 people
Posted August 20, 2004
Citing the need to restructure management as another step to cut costs, CEO Bill Ayer today announced a voluntary severance incentive (VSI) program to reduce Alaska’s management corps.
“The reasons for the reorganization are to speed decision-making and to improve communication and accountability,” Ayer wrote in a memo to all management employees. “The aim is to improve execution by eliminating some of the layers of management that served us well in a different era, but unfortunately don’t meet the needs of today’s tough environment.”
Ayer estimated that between 100 and 150 people would depart once the program is completed. He estimated the savings at between $5 million and $10 million a year.
“Since announcing our Alaska 2010 plan last year, our focus on reducing costs excluded reductions in employees,” Ayer said. “Now we are changing that. We’re paring management people in a way that tries to respect the contributions they have made.”
Ayer replied “yes” when asked if layoffs might follow should not enough managers volunteer to accept the severance package now open to them. According to Dennis Hamel, vice president, employee services, there are 1,674 active management employees at Alaska.
Dubbed “VSI” by Employee Services, the program is a one-time only offer that will close September 7. Key features of the VSI program are two weeks of pay for each year of service; a bonus of between $3,000 and $15,000 depending on length of service; one year of company paid healthcare; and, travel benefits for the employee and eligible dependents.
“We recognize the key role that employees have played over the years and, for those who leave, we want to make the transition as smooth as possible,” Ayer said.
Ayer’s memo included this sobering assessment: “Alaska is not immune from the impacts that are redefining our industry. We’ve been unprofitable for four consecutive years. Fuel prices are skyrocketing, fare levels remain stagnant and competition is intensifying.
“Since 9/11,” he continued, “and especially since we formed the Alaska 2010 plan, we’ve looked—and will continue to look—at every possible way to strengthen this airline to survive this unprecedented period. Because the major carriers are restructuring and low-cost carriers are operating opportunistically and aggressively, we would be irresponsible not to take strong action.”
Ayer ended the memo citing the changes as “a window of opportunity to shape our own future” by meeting the goals set forth in the Alaska 2010 plan. “We owe nothing less to our employees, our customers and our shareholders,” he said.
