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The Walmartization of SKYW

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ArcticFlier

SpdmodehdgmodebugV21/2bnk
Joined
Jun 22, 2002
Posts
901
If someone has posted this already, I apologize for the redundancy. I haven't seen it here, though.


NEW YORK, August 16, (Investor's Economic Resources)
http://investorsresources.bravehost.com/dalskyw.htm
DAL-SKYW deal first effect of New Paradigm

The sale of Delta's ASA subsidiary to Skywest for $425
million gives DAL some breathing room and may set the stage for Delta
to broach the subject of much needed further wage concessions from
its employees.

More interesting, is that the sale was probably the first
tangible effect of the new paradigm in labor relations that could
take place if Northwest Airlines is able to replace it unionized
mechanics with much lower paid employees. NWAC will be able to impose
wage cuts of 26% and layoffs on Friday when the federally imposed
cooling-off period expires. This will be the first time a major
airline has essentially de-unionized a major segment of its
workforce. It will be the beginning of a new paradigm for labor
relations in the airline industry and possibly have wider
repercussions.

It is doubtful that the highly union-phobic SKYW would have
bought ASA if it did not think it could ultimately remove the unions
from the ASA property. SKYW probably intends to use the same tactics
that NWAC is using to remove the mechanics union (AMFA) with some
additional wrinkles.

SKYW could use personnel from its non-union operations to
replace the ASA workforce if necessary. In this way SKYW will be able
to "Walmartize" its operations. Walmart is union-proof because it can
take the negotiating stance that it will never agree to a contract
that ever pays unionized workers as much a non-union workers. With
5,000+ stores Walmart can afford to keep any one unit shut
indefinitely, rather than sign a contract paying union members as
much as non-union members (and certainly never more than non-union
members). Once Walmart employees understand this stance, they
understandably will never vote to certify a union.

SKYW will probably adopt the same stance with the ASA unions
and use the NWAC tactic of waiting until the cooling-off period
expires and then imposing cuts with a reserve army of replacement
workers waiting in the wings. This new paradigm will set the tone in
airline labor relations for years to come. If NWAC is able to impose
wage cuts without resorting to bankruptcy it might lead to a
repricing of all securities in the airline industry. The valuation
gap between legacy airlines and low-cost carriers could narrow
appreciably.

http://investorsresources.bravehost.com/dalskyw.htm

AF :cool:
 
I hate to be here this late but, WTF does NW have do do with ASA being sold to Skywest. This is an irrelevant article considering both pilot groups envolved have nothing to do with the mechs that Nw is going to replace.

And the Gov doesn't give a Sh!t about.

ENJOY
 
This is a pretty stupid arguement, does WalMart have "legacy", "national", "regional", and "cargo" competition after them. No they have Target (great company for those who want to invest) and Kmart...lets see, thats 3 companies, not start-ups or the volatile market we are in.

Pray to J be the same ol, ol...
 
SKYW will probably adopt the same stance with the ASA unions
and use the NWAC tactic of waiting until the cooling-off period
expires and then imposing cuts with a reserve army of replacement
workers waiting in the wings. This new paradigm will set the tone in
airline labor relations for years to come.


So SkyWest is going to have 1500+ pilots waiting in the wings? They have a hard enough time hiring people wanting to make $18K to start. Where would they find enough qualified Cpts. They would have to shut down. The comparision to NWA is ridiculous.

I do believe there will be pressure exerted on ASA to keep wages competitive with SkyWest wages.

The article is a joke and so is the moron that wrote it.
 
replacement workers

This is a management euphamism for people who will do the work of union members during a labor dispute. There is a much overused 4-letter word- starts with "S"- to describe such people. In this case I believe its use would be appropriate

If it walks like a duck...
 
C.Warrior said:
SKYW will probably adopt the same stance with the ASA unions
and use the NWAC tactic of waiting until the cooling-off period
expires and then imposing cuts with a reserve army of replacement
workers waiting in the wings. This new paradigm will set the tone in
airline labor relations for years to come.

I didn't realize that SkyWest was subject to a Railway type agreement and the associated "cooling-off period".


So SkyWest is going to have 1500+ pilots waiting in the wings? They have a hard enough time hiring people wanting to make $18K to start. Where would they find enough qualified Cpts. They would have to shut down. The comparision to NWA is ridiculous.

I do believe there will be pressure exerted on ASA to keep wages competitive with SkyWest wages.

The article is a joke and so is the moron that wrote it.

Agreed.

Unbelievable that such a moron could get a media source to print his ill-informed analysis.

GP
 
Keep in mind that this article doesn't say anything about pilots specifically....just unions in general. Sure it would be difficult to apply this theory to ASA's pilot group, but what about its mechanics? Northwest is doing it right now...although their success is yet to be determined. If it does work out for them though, who's to say that other airlines can't follow suit?
 
This all assumes that SkyWest remains non-union. The whole rationale falls apart in the event of a succesful union drive. I agree, whoever wrote that is way out of touch with the realities of the industry. Maybe Boyd secretly helped this analyst out a little.
 

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