Sun Country to halve pay for the rest of 2008

Grandpa +65

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Sun Country to halve workers pay for the rest of 2008


Minnesota-based leisure carrier Sun Country Airlines is the latest U.S. carrier to run into financial turbulence. Describing the carrier as "low on cash as it enters one of the slowest travel seasons of the year," the Minneapolis Star Tribune writes Sun Country "told workers on Monday it would cut their pay in half beginning next week and reimburse them in 2009." However, two of the carrier's biggest unions –- those representing pilots and flight attendants -– have yet to sign off on that plan. The company floated the idea to union leaders on Friday before announcing the move Monday, according to the Star Tribune.
"We disagree with the unilateral action taken by the company" in which the company went forward with announcing the pay deferral, attendants' union spokesman Joe Battaglia tells the Star Tribune. "We will use all available avenues to protect our membership." The pilots union declined to be interviewed by the Star Tribune, though a union official said in an e-mail to the paper that "we have made no commitments to management." Sun Country CEO Stan Gadek tells the Star Tribune he hopes to win the unions' support, but adds: "I intend to go forward with it regardless. … I've got to run a business here." For his part, Gadek says in a letter to workers that he will "work without pay until this crisis is resolved."
So, what landed Sun Country in its current predicament? The Star Tribune writes "Sun Country's move came as its embattled chairman and majority shareholder, Tom Petters, resigned Monday as chairman and CEO of Petters Group Worldwide as well as from roles in its affiliate companies, including the airline. Petters is the main target of a federal fraud investigation."
The St. Paul <A href="http://www.twincities.com/allheadlines/ci_10592465? target=_blank"">Pioneer Press writes Gadek's letter to employees said that "under normal circumstances Sun Country would have requested a short-term loan from our parent company with repayment to be made from first-quarter 2009 earnings. That option is not available to us now." Sun Country officials tell the Pioneer Press the airline’s operations will continue as normal. Gadek tells the paper the airline is making progress on its long-term goals, but says the unexpected trouble at its parent company came at a particularly bad time. "We'll survive this, it's simply a matter of the timing," Gadek is quoted as saying by the Pioneer Press.
 

HalinTexas

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JUST SAY NO!

It won't make a difference one way or the other. It won't bankrupt it nor save it. Efficiency of scheduling will.
 

filejw

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Or they could go to a bank or commercial paper loan...oh guess not.... they have no money either...
 

Draginass

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This will probably just allow the company officers to skim a lot more money from the company before the walk away from it when it finally grinds to a halt.
 
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carl p

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With Midwest and Sun Country wanting massive cuts along with AirTran asking for cuts now is the time for pilots to draw a line in the sand!!!! At those wages this isn't a career worth having. We must all hold the line. Tell them hell no!!!!!!!!!!!!!!!!
 
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