Re: Unions and Capitolism don't mix.
LiveFreeorDie said:
United and Delta got great contracts three years ago that killed their airlines. Our tax dollars shouldn't bail them out.
Good luck to y'all in this brave new world.
In UALs case, I firmly agree.
I am a former UAL employee, worked in OPBCM (UAL speak for the pilot crew desk) during the Summer of Love (Summer of 2000).
I wish nothing but good luck to my former colleagues - I know many people at UAL, in CHIDD, OPBCM, OPBWX, and a few other places.
UALs problem was incompetent senior management in the Goodwin era, and its legacy. I was working the ORD 767 crew desk the day the USAir merger was announced. Before the announcement, a friend of mine who was a CS lead at LAS, said that his station had had visits from VP after VP all saying the same thing "expect a major announcement in the west." His assumption was was the UAL-AWE merger was back on (there had been very strong rumors to that effect in the late 90s).
When it was announced, I was dumbstruck. I looked at the relative seat/mile costs. At the time, UAL was floating around 9 cents/mile - US was near 13 cpm. I couldnt believe it. Why in the hell would management propose a merger with the most expensive (in seat/mile costs) domestic airline? What crack were they smoking? They were in the middle of the most rancorous labor negotiation with the pilot group in their history, one which made 1985 look pleasant (according to the OPBCM old timers who had been around then).
During the Spring of 2000, all UAL non-union employees received what was called the "Vision 2000" pay realignment. At OPBCM, my salary jumped from around 28k to nearly 41k. I was happy. However, a very senior crew controller who had been around since dirt said "Dont go out and spend this raise. The only reason they can afford this is that were carrying full boats, we can tick off thousands of people a day, but it doesnt matter. BUT, the second the ecomony goes south, and it will, THIS company will be in a severe world of hurt." Very prophetic.
The Summer of Love cost UAL millions, in lost revenue due to the cancellations, lost shareholder value (due to the USAir announcement), and ill will. I talk to local travel agents around here at home and some still wont book UAL three years later.
All of the groups at UAL are responsible, for there is enough to go around. The UAL ALPA MEC, management, the PAFCA contract (starting dispatcher pay around 60k a year before the givebacks, topping out over 100K after 12 years), the AFA, all of the contracted groups - setting the bar high is nice, but in the end, was getting industry leading contracts worth it all? I remember when the Contract 2000 was ratified, and we were all happy that we could get back to running an airline - how wonderful to know that all the blood, sweat, and tears from the Summer of Love has all been essentially negated.