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Southwest Offers CASH for Pilots to leave!

SWA/FO

5 Star Senior Member
Joined
Nov 26, 2001
Posts
3,520
Total Time
>12000
Its called the Freedom 09 Voluntary Separation Program!

Hired 1997 or earlier = $130,000
1998 = $115,000
1999 = $105,000
2000 = $95,000
2001 = $80,000
2002 = $70,000
2003 = $60,000
2004 = $50,000
2005 = $35,000
2006 = $25,000
2007 = $15,000
2008 = $4,500

I wonder if any old goats are leaving?
 

shootr

Well-known member
Joined
Nov 25, 2001
Posts
486
Total Time
10+
Higher than expected. Don't expect many to take it.

shootr
 

SWA/FO

5 Star Senior Member
Joined
Nov 26, 2001
Posts
3,520
Total Time
>12000
A couple of senior guys will take it...tired of the 2 leg commute to TUL or OKC.

I bet Capt. Dave Rose - that just "retired" last Friday in OAK is kicking himself right now. All he had to do was work another month and he would have gotten $130,000 to do what he was planning on doing anyway!
 

Colonel Savage

Southern style...
Joined
Mar 11, 2008
Posts
1,271
Total Time
NoTime
Not much of an offer, though. Especially the "1997 or earlier" part. Kind of an insult really, for the 20+ year guys.
 

SWA/FO

5 Star Senior Member
Joined
Nov 26, 2001
Posts
3,520
Total Time
>12000
Not much of an offer, though. Especially the "1997 or earlier" part. Kind of an insult really, for the 20+ year guys.


Don't worry about the 20+ year guys, they are doing just fine. Remember this is voluntary
 

banger

Well-known member
Joined
Nov 17, 2002
Posts
301
Total Time
20,000
Funny you mentioned Dave's name. If it is the same Dave I went to AOCS with him and flight school back in 1981. Haven't heard or seen him since just now. Thanks for renewing the memories!
 

Old School 737

NG's now and it is A OK!!
Joined
Jun 13, 2005
Posts
986
Total Time
Enough
Funny how it was SWA leading the push to raise the age 60 rule now this!!!!!!
 

Yuppyguppy

Well-known member
Joined
Nov 17, 2003
Posts
934
Total Time
8000+
Yep...nice one swapa...and alpa too (which voted against the majority of the membership that said "NO")
 

satpak77

Marriott Platinum Member
Joined
Dec 2, 2003
Posts
3,015
Total Time
5000+
Its called the Freedom 09 Voluntary Separation Program!

Hired 1997 or earlier = $130,000
1998 = $115,000
1999 = $105,000
2000 = $95,000
2001 = $80,000
2002 = $70,000
2003 = $60,000
2004 = $50,000
2005 = $35,000
2006 = $25,000
2007 = $15,000
2008 = $4,500

I wonder if any old goats are leaving?

what happens when nobody takes this offer?
 

CheapFlyer

Well-known member
Joined
Jan 8, 2004
Posts
118
Total Time
10500
I would jump all over this if I was 60+ with 20 years of captain pay under my belt.

-CF
 

Colonel Savage

Southern style...
Joined
Mar 11, 2008
Posts
1,271
Total Time
NoTime
I guess the real question is why are they doing this.
 

shootr

Well-known member
Joined
Nov 25, 2001
Posts
486
Total Time
10+
We are overmanned as a company. This offer is open to almost all employees but only pilots have been offered this high of an amount (it's based upon salary). SWA does this every few years to weed out the most senior employees. Rarely are pilots included.

Due to the shoulder cuts, we're about 200 pilots overmanned. This may be a way to mitigate it...if anyone takes it.

shootr
 

satpak77

Marriott Platinum Member
Joined
Dec 2, 2003
Posts
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5000+
still unanswered....

We are overmanned as a company. This offer is open to almost all employees but only pilots have been offered this high of an amount (it's based upon salary). SWA does this every few years to weed out the most senior employees. Rarely are pilots included.

Due to the shoulder cuts, we're about 200 pilots overmanned. This may be a way to mitigate it...if anyone takes it.

shootr

Questions still remain

1. As discussed above, "pilots are rarely included". OK - Why now?

2. Ok, a few guys will take it. However what if not enough (whatever # worked out by the corporate office), then what? This is supposedly aimed at "senior captains." How many low level FO's make up one senior captain, in terms of cost to the company? Three? So does that mean three (or whatever, this is used only for discussion) FO's will be furloughed for every non-responding "senior captain" to this offer?

3. Lets say 10 million guys (again, used for discussion) take it, now what happens to manning and fleet plans? Will hiring resume? Based on #2 above, it is arguably more cost effective to have three bodies on the property at the cost of one senior body in one cockpit.

4. Age 65 - I wonder what this is actually costing SWA in terms of salary, etc. 200K a year for 5 more years past age 60, well that is 1M dollars, for one body. Would I pay $250,000 to get rid of that 1 million dollar guy? Yes, of course.

etc etc
 
Last edited:

jimmykjet

Member
Joined
Sep 16, 2005
Posts
14
Total Time
1 HOUR
Why would any leave?

There is no minimum required work month. Work zero and gain five weeks a year. Hmmm figure this out guys...

5 weeks vaca per year with overlap pay =

48 TFP per week x $200 per hour = $9,600

5 weeks = $48,000 per year to not work one day???

5 yrs = $240,000

I'd say they are about $110,000 short!

That does not even include sick time, VJA and training. They could come to work about 12 days a year and easily make over $100,000! And not draw a dollar out of the 401K.

Young guys continue to enhance their careers!!
 

Dude

Primer oficial
Joined
Nov 26, 2001
Posts
396
Total Time
10000+
Dave already had his paperwork in and was told to pull it so he could receive the buyout. Unfortunately the company has decided that anyone with previously submitted retirement paperwork would not be eligible for the buyout. Typical BS.
 

shootr

Well-known member
Joined
Nov 25, 2001
Posts
486
Total Time
10+
1. Why pilots? Because we hired 200 too many because the PD thought we were going to expand...we didn't.

2. Not enough guys take it? We're not overmanned enough for a furlough to make financial sense, if that's what you're getting at. Our lines will be a little lean and there will be less EF/VJA to pick up. Also, you can't compare FO/CA salary for manning problems. If a senior CA leaves, he'll be replaced by a junior CA. The pay differential between a senior and a junior CA at SWA is not that large. Little difference to the company bottom line. The company is not offering early outs as much to save specific salaries, rather it's so we have the right number of pilots.

3. What if too many guys take it and we have to hire? Not gonna happen. IF it did, everybody wins.

4. Age 65? Again, a senior CA is replaced by a junior one. Not that big of a salary difference. A 1 million dollar guy wil get replaced by a 990,000 guy. Now, if a 63 year old calls in sick a great deal more than a 45 year old, that could make a big difference.

Hope this helps,
shootr

PS Already voted No!
 

PropPiedmont

Well-known member
Joined
Dec 13, 2005
Posts
556
If the company was smart they would have included a one time buyout clause in the TA. They could have offerred $300K and got a lot more YES votes to pass the TA.

Of course, they assume it will pass. But, if it doesn't they could have locked it in. Maybe, a new buyout number will come from a renegotiation of the TA, when it hopefully gets rejected.
 
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