UAL does a Lorenzo tactic

[Boeingman]

http://biz.yahoo.com/djus/030317/1959001392_1.html


1983 Deja Vu. The end is near.

 

[GulfPilot]

With the difference being in 1983 Lorenzo and his gang filed bankruptcy with specifically that purpose in mind..to abrogate the collective bargaining agreement in place, while methinks United's position is a bit more dire...hope it works out

 

[Boeingman]

With the difference being in 1983 Lorenzo and his gang filed bankruptcy with specifically that purpose in mind..to abrogate the collective bargaining agreement in place, while methinks United's position is a bit more dire...hope it works out

Well, the timing may be different, but CAL's cash position in 83 was just as critical.

The end result is just the same.

 

[VFR on Top]

With the difference being in 1983 Lorenzo and his gang filed bankruptcy with specifically that purpose in mind..to abrogate the collective bargaining agreement in place

Okay, so it'll be the rest of the carriers that follow UA into bankruptcy court solely to bring their labor costs in line with UA's that will be pulling a "Lorenzo"--it's gonna happen, and y'all elected the wrong president and congresscritters to hope for any help from Washington.

 

[pilotyip]

125 K per year

125 K per year sitting in cockpit beats 36K per year driving a bread truck on your designated route.

 

[bobbysamd]

Uncle Frank rides again

<Sigh> What a surprise.

Time to reread the Lorenzo chapters in Flying the Line and Hard Landing.

Although I understand that after the 1983 Lorenzo episode that Congress changed the law to require bankrupt companies to gain bankruptcy court permission to abrogate union contracts. The law was changed to minimize outright Lorenzo-style abuse.

[Y]'all elected the wrong president and congresscritters to hope for any help from Washington.

Like father, like son. Let's hope that "son" finishes the job in Iraq.

 

[20sx]

And don't forget, the majority of the population DIDN'T vote for George Jr.

 

[eaglefly]

...and even less will vote for him next time around, regardless of the success of the war.

 

[Publishers]

things

Let me go over a few things just for clarity about this tactic.

When you go into bankruptcy, you lose a certain amount of control and stategic thinking as part of the deal. The first thing that you do is find someone to lend you money.

They are willing to do that because their debt takes preference over all other debt. They also get --- as it is their money --- the right to make some rules that management can go along with or get someone else to lend them the money.

Often these rules dictate some of these things that you call tactics. The people that lend this money care about but one thing. Getting their money back and some interest with it. If they say you have to cut your costs to a certain percentage of revenue to get anymore money, that is what you do.

The fact at this point is that you mise will throw the contracts in the trash because the company that they were made with no longer exists. It is gone, the victim of many things. Therefore there really is nothing being lost except what has already been lost.

 

[trainerjet]

And don't forget, the majority of the population DIDN'T vote for George Jr.

Which means exactly what? Maybe you could tell us who the majority of the population DID vote for.

That's what I thought.