Southwest offers buyouts to quarter of workers

[HockleyPilot]

Southwest offers buyouts to quarter of workers

By BILL HENSEL JR.
Copyright 2007 Houston Chronicle
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Southwest Airlines is offering a buyout package to more than a quarter of its employees as it strives to cut costs.
About 8,700 employees are eligible for the package, which includes a $25,000 payout, medical and dental benefits and travel privileges in some cases, Southwest spokeswoman Paula Berg said today.
Dallas-based Southwest, which said last month it was slowing its growth in capacity by adding fewer planes this year, has 2,866 employees in Houston and 33,000 total.
Southwest carries more than 80 percent of the passengers that move through Houston's Hobby Airport.
Among those eligible for the buyout are flight attendants, ramp agents, customer service agents and their supervisors.
The airline offered its only other employee buyout in 2004, Berg said, as the airline industry was still feeling the effects of the Sept. 11, 2001 terrorist attacks.
The airline has not had furloughs or layoffs, Berg said. "We have no plans for that," she said.
[email protected]

 

[atpcliff]

Hi!

Hopefully, most of them will take the buyout, and then there won't be any furloughs or paycuts for those who are left.

cliff
YIP

 

[CHQ Pilot]

Hopefully, most of them will take the buyout, and then there won't be any furloughs or paycuts for those who are left.

I don't think this is to avoid furloughs or paycuts. They're just trying to offer some incentive to eliminate some of the highest paid among their respective employee groups. They are still hiring and running new classes for FA, Ramp, and Customer Service Agents. Pilots aren't even eligible for the buyout. This isn't the first time they had this kind of offer either, so it's just another way SWA has found they can reduce long term costs.

 

[SWA GUY]

Hi!

Hopefully, most of them will take the buyout, and then there won't be any furloughs or paycuts for those who are left.

cliff
YIP

What a moron...

 

[atpcliff]

Hi!

I've never heard of a company offering buyouts unless they needed to improve their financial position, which meant that they weren't do as well as they'd like.

Is this somehow different?

For example, neither Toyota, Hyunday, or Honda is offering their employees buyouts, and they're doing very well financially.

The Big 3 are struggling, and they are offering plenty of buyouts.

cliff
YIP

 

[cfm56-7b]

Quote:
Originally Posted by atpcliff
Hi!

Hopefully, most of them will take the buyout, and then there won't be any furloughs or paycuts for those who are left.

cliff
YIP

What a moron...
__________________
Mongo merely pawn in game of life.

Has a good point, SWA's money is not any different then any one else.

 

[m80drvr]

No kidding

It surprises me that many at SWA feel that they are immune to what the rest of the industry has gone through.

I do agree that SWA's management is great to their employees BUT it's the shareholders that drive the boat in the long run, and as good as SWA's mgt is the stock has been rather flat lately

 

[SWA/FO]

For example, neither Toyota, Hyunday, or Honda is offering their employees buyouts, and they're doing very well financially.

All the above are NON-Union. Buyouts are not needed.

stock has been rather flat lately

8 years............flat line.

It surprises me that many at SWA feel that they are immune to what the rest of the industry has gone through.

Don't know many that think or feel this way. Don't believe all you hear on flightinfo.com.

the SWA/FO rules!!

 

[xanderman]

What a moron...

Um, yeah, I'm gonna need you to take the tourniquet off and remove the needle... Yeah, thanks...

 

[ferlo]

What a moron...

25% of the staff?!! and you're calling him the moron? pull your head out of that canyon blue sand and receive the reality check.

 

[GuppyWN]

We are running at 20% fewer employees per aircraft than we were 6 years ago.

We're not laying off anybody. It is a management tactic to try to get the upper pay scales to go away. If you want it great. If not then see you Monday morning at 8am.

You guys really don't know what to make of an airline management that actually manages. You're used to pay cuts, fleet selloffs and contract breakers who give themselves a huge bonus for a job well done.

We're not perfect by a long shot but I'm very happy to see us once again leading instead of just making decisions for the sake of doing something.

Gup

 

[YourPilotFriend]

Evidently selling tickets at a loss is no longer a viable way to gain market share anymore. Oops......only in this business!

 

[737 Pylt]

the SWA/FO rules!!

Yeah, a trailer park!!!!:laugh: :laugh: :laugh:
Just ask his parents!

737

 

[Bake]

Yeah, but its a nice trailer park. Ask General Lee, he lives there along with his 2nd personality; Heavy Set. SWA/FO the trailer lord. I like it!!!

 

[mdf]

25% of the staff?!! and you're calling him the moron? pull your head out of that canyon blue sand and receive the reality check.

What is says is 25% of all employees are eliglible for the voluntary buyout. Please stop with the sensational spin. This was done a couple of years ago also.

 

[brokeflyer]

I guess that fuel bill came in the mail......

 

[HalinTexas]

My next door neighbor is an SWA FA. Just told me about it this evening. He's been there 18-20 years and is considering it.

The real news. He's straight! His wife is handicapped, MS I think. Didn't mention what he'd do for a living. NOMB.

I'd say a buyout is better than looking for excuses to fire people. ATA is kinda doing that now. Giving the FA's a rash of sh!t on an individual basis and messing with what few mechanics we have left.

 

[Hose A. Jiminez]

Hi!

I've never heard of a company offering buyouts unless they needed to improve their financial position, which meant that they weren't do as well as they'd like.

Is this somehow different?

For example, neither Toyota, Hyunday, or Honda is offering their employees buyouts, and they're doing very well financially.

The Big 3 are struggling, and they are offering plenty of buyouts.

cliff
YIP

Dude,

We are still actively hiring into the groups that we are offering early out. We did this in '04. its nothing new.

 

[atpcliff]

Hi!

Hopefully this works for SWA, and they keep doing great.

cliff
YIP

 

[ivauir]

Evidently selling tickets at a loss is no longer a viable way to gain market share anymore. Oops......only in this business!

Um, we're the one selling tickets at a profit - I guess math wasn't your strong suit .....

For all those with poor reading skills this buyout is not for pilots and while it applies to 25% of the workforce it will not be taken by any thing closer to that number. Hopefully we can get rid of some of our less motivated senior employees.

This isn't the first time we've done this either ....

I bet we close another res center soon.

 

[LUVChild]

I doubt we close another res center. After we did that, we suddenly found ourselves in a hiring crunch for res agents. Even though more res agents stayed on than I think SWA planned for, we suddenly started seeing postings on SWALife to hire res agents at those remaining centers. For whatever reason, it sounded like the customers returned to using the SWA res agents. It kind of matches what other airlines are seeing - the number of customers are returning, but nobody is getting as high of yield as they really want.

And while a higher percentage of traffic has gone to southwest.com, there are still those who need technical help and will call a res agent.

This buyout is strictly a proactive move, IMHO - nothing more or less. Part of it came from employees who requested another buyout similar to the Freedom 04 package. The other reason is, yes, it will help get our costs down. It's a win/win. But unlike the Freedom 04 deal, you're seeing more restrictions on this one as to whom can actually take advantage of the deal.

Some people can spin it into doom and gloom, I suppose, but I see it as a responsible, proactive, and employee-friendly move. And I've been here long enough to see quite a bit.

 

[RedDogC130]

we made a decent profit for the 2nd qtr so we are not hurting.

 

[WNFO]

The company did this 8 years ago when I was a ramp agent. Just another way to help keep costs down and keep the company from getting to top heavy. It mostly applies to ramp, csr, ops, FA's and NOT pilot's. It really is only a good deal for someone that is close to retiring or has a second job anyway, and most don't opt to do it.

 

[SWA/FO]

Yeah, a trailer park!!!!:laugh: :laugh: :laugh:
Just ask his parents!

Where is your 1/3 truck avtar? Were you feeling dirty about it. Why did you change it?

My parents have passed away, show some respect. Dad died of a broken heart, cus Delta screwed him, by cutting his retirement coverage and pay. I think his last words were..."those young bastards at Delta have forgotten about the guys that build the company, they only care about themselves."

We had to sell the trailer to pay for the funeral and the remaining money went to Delta to pay his last medical bill/co-pays. Very sad.:bawling:

the SWA/FO

 

[AutoBus]

Um, we're the one selling tickets at a profit - I guess math wasn't your strong suit .....

For all those with poor reading skills this buyout is not for pilots and while it applies to 25% of the workforce it will not be taken by any thing closer to that number. Hopefully we can get rid of some of our less motivated senior employees.

This isn't the first time we've done this either ....

I bet we close another res center soon.

Of course "Sale and Leaseback" of aircraft helps smooth out the bottom line in tough times.

 

[SWA/FO]

Of course "Sale and Leaseback" of aircraft helps smooth out the bottom line in tough times.

better then the "rape and pillage" some airlines offer their employees.

 

[YourPilotFriend]

better then the "rape and pillage" some airlines offer their employees.

yet the employees keep coming back for more.....that's a huge advantage in the business world.

 

[bravodude]

Hi!

I've never heard of a company offering buyouts unless they needed to improve their financial position, which meant that they weren't do as well as they'd like.

Is this somehow different?

For example, neither Toyota, Hyunday, or Honda is offering their employees buyouts, and they're doing very well financially.

The Big 3 are struggling, and they are offering plenty of buyouts.

cliff
YIP

Lets see we made money AGAIN! so yes pay cuts are comming oh my god run run get away go to delta go now.