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why does the unions strike on these days?
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An old farmer decided it was time to get a new rooster for his hens. The current rooster was still doing an okay job, but he was getting on in years and the farmer figured getting a new rooster couldn't hurt. So he buys a new cock from the local rooster emporium, and turns him loose in the barnyard. Well, the old rooster sees the young one strutting around and he's a little worried about being replaced. He walks up to the new bird. "So you're the new stud in town? I bet you really think you're hot stuff don't you? Well I'm not ready for the chopping block yet. I'll bet I'm still the better bird. And to prove it, I challenge you to a race around that hen house over there. We'll run around it ten times and whoever finishes first gets to have all the hens for himself." Well, the young rooster was a proud sort, and he definitely thought he was more than a match for the old guy. "You're on," he said, "and since I'm so great, I'll even give you a head start of half a lap. I'll still win easy!" So the two roosters go over to the henhouse to start the race with all the hens gathering to watch. The race begins and all the hens start cheering the old rooster on. After the first lap, the old rooster is still maintaining his lead. After the second lap, the old guy's lead has slipped a little -- but he's still hanging in there. Unfortunately, the old rooster's lead continues to slip each time around, and by the fifth lap he's just barely in front of the young fella. By now the farmer has heard the commotion. He runs into the house, gets his shotgun and runs into the barnyard figuring a fox or something is after his chickens. When he gets there, he sees the two roosters running around the henhouse, with the old rooster still slightly in the lead. He immediately takes his shotgun, aims, fires, and blows the young rooster away. "Danm. That's the third gay rooster I've bought this month."
Yank McCobb
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Stifler's Mom
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you are correct english is not my first language.
But I am just trying to figure out why the unions think that the are going to fix the company by going on strike.
Is shutting down a company will that solve the problem?
I understand that my english is not that great but I am learning and try to improve it every day.
But I am just trying to figure out why the unions think that the are going to fix the company by going on strike.
Is shutting down a company will that solve the problem?
I understand that my english is not that great but I am learning and try to improve it every day.
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Dangerkitty
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se1776,
Hopefully you'll do us all a favor and take your "I'm just happy to have a job, no matter what they pay us" attitude back to your home country. I have absolutely nothing against foreign pilots but we don't need anymore chumps willing to make any concession necessary in exchange for a pair of epaulets. Too bad the Jeppessen commercial pilot course doesn't spend a chapter on self worth.
As long as you agree to continually cut your pay whenever the industry suffers there is no incentive for management to actually manage the dam# company.
Hopefully you'll do us all a favor and take your "I'm just happy to have a job, no matter what they pay us" attitude back to your home country. I have absolutely nothing against foreign pilots but we don't need anymore chumps willing to make any concession necessary in exchange for a pair of epaulets. Too bad the Jeppessen commercial pilot course doesn't spend a chapter on self worth.
As long as you agree to continually cut your pay whenever the industry suffers there is no incentive for management to actually manage the dam# company.
Dangerkitty
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se1776- I can't speak for everyone on this board, just my own 2 cents-so here goes.
The "big 6" airlines have been after paycuts from the employee groups for years. This occured back in the 80's and 90's too, not just after 9/11. Mgmt asks for givebacks from the employees while they are lining their own pockets and fluffing their "golden parachutes". This is just not right and the employee groups are sick and tired of taken the brunt of it. The planes are full, all they need to do is raise the tix price by a couple of bucks to fix some of the problems. Why should we as employees have to pay for mgnt's bad decisions? Aviation is the only industry where if you fail as a leader, you end up getting rewarded, ie Wolf, Seigel, Mullins, ect. So as I recommended in my previous post perhaps you can do a little resurch of your own, read the papers, watch the news, and surf the net. I'm sure you will get a little better insight as to why unions strike. Keep informed
V-STALL
The "big 6" airlines have been after paycuts from the employee groups for years. This occured back in the 80's and 90's too, not just after 9/11. Mgmt asks for givebacks from the employees while they are lining their own pockets and fluffing their "golden parachutes". This is just not right and the employee groups are sick and tired of taken the brunt of it. The planes are full, all they need to do is raise the tix price by a couple of bucks to fix some of the problems. Why should we as employees have to pay for mgnt's bad decisions? Aviation is the only industry where if you fail as a leader, you end up getting rewarded, ie Wolf, Seigel, Mullins, ect. So as I recommended in my previous post perhaps you can do a little resurch of your own, read the papers, watch the news, and surf the net. I'm sure you will get a little better insight as to why unions strike. Keep informed
V-STALL
se1776- here's an article for you from the Houston Chronicle
July 31, 2005, 12:39AM
Compensation doesn't add up in Airlineland
By LOREN STEFFY
Copyright 2005 Houston Chronicle
When you look at the list of highest paid executives in Houston last year, one question jumps out.
How can somebody in one of the worst-performing industries make more money than all the energy industry executives whose options and performance were fueled by record oil prices?
The answer lies in what passes for success in Airlineland.
As you'll see elsewhere on this page, former Continental Airlines Chief Executive Gordon Bethune tops the pay list, pulling down $34.3 million, largely because of a generous retirement package.
Since joining Continental as president in 1994, Bethune has led one of the more spectacular turnarounds in the industry.
Under his leadership, a twice-bankrupt carrier pulled itself together, upgraded its fleet and improved customer service. And he did it while throwing off folksy aphorisms comparing airlines to pizza.
But was it worth $34 million?
Continental, after all, is far from fixed, and that was obvious well before Bethune retired at year's end.
It faces many of the same fundamental problems it did in 1994. In the ensuing decade, low-fare carriers have chipped away at market share and driven down fare prices. While Continental lost money in three of the past five years, Southwest Airlines posted profits.
Excluding his $27 million retirement package, Continental last year paid Bethune $7.2 million in salary, bonus and other benefits, according to the company's filings with the Securities and Exchange Commission.
Southwest's chairman, Herb Kelleher, who helped found the airline that has changed the face of the industry, received $710,000. He also received stock options that may eventually be worth another $5 million, based on the company's estimate.
In fact, Southwest's six-member executive team cost shareholders $3.5 million, excluding options.
At Continental, the cost of the top six executives, excluding Bethune's retirement package, was $17.9 million. It would have been higher — $19.3 million — if current CEO Larry Kellner and President Jeffrey Smisek hadn't waived their bonuses.
Estimates are much higher
To be fair, options are a big part of Southwest's compensation plan, and using the company's highest estimates brings the costs more in line — about $18.9 million. Because Southwest stock went sideways last year, those options aren't going to pay out any time soon.
In other words, shareholders didn't get a return, and so executive pay was limited, despite the industry's best financial performance.
Continental shareholders, meanwhile, saw the value of their investment fall almost 17 percent last year.
Again, some perspective is needed. A 17 percent decline by airline standards isn't bad these days. Delta, just a few steps from bankruptcy, is the worst-performing stock in the Standard & Poor's 500 Index this year, falling some 60 percent.
Many of the initiatives begun under Bethune may help bring Continental out of its malaise. The airline is focusing on more profitable international routes and investing in more efficient aircraft.
Problems will continue
But it's far from fixed. As Continental was delivering Bethune's big check, it was asking its employees to surrender some of theirs. The airline pressed workers for $500 million in concessions and got them this spring.
Even before that, Continental workers earned less than the industry average. On an hourly basis, Southwest pays its pilots more.
That's because back in 1994, Continental's turnaround was financed in part by workers' sacrifices. They agreed to lower pay on the promise they would reap the rewards later.
Unlike Bethune, their reward has been more sacrifice. It's as if the money went straight from their paychecks to his. Perhaps they could have set up a convenient payroll deduction plan.
We hear a lot of blather from the airline industry about how difficult the business is. They can't control fuel prices, unions are too demanding, Sept. 11 hurt the industry.
A one-time event
Well, Sept. 11 was a one-time event that, from the industry's financial standpoint, is long gone. Fuel has been a component of flight costs since flight began. And labor? Well, obviously unions aren't the only driver of those costs. So what's the answer? Clearly no one knows. But that's the point. For $34 million, someone should.
Loren Steffy is the Chronicle's business columnist. His commentary appears Sundays, Wednesdays and Fridays. Contact him at [email protected]. His blog, Full Disclosure, is at blogs.chron.com/fulldisclosure.
July 31, 2005, 12:39AM
Compensation doesn't add up in Airlineland
By LOREN STEFFY
Copyright 2005 Houston Chronicle
When you look at the list of highest paid executives in Houston last year, one question jumps out.
How can somebody in one of the worst-performing industries make more money than all the energy industry executives whose options and performance were fueled by record oil prices?
The answer lies in what passes for success in Airlineland.
As you'll see elsewhere on this page, former Continental Airlines Chief Executive Gordon Bethune tops the pay list, pulling down $34.3 million, largely because of a generous retirement package.
Since joining Continental as president in 1994, Bethune has led one of the more spectacular turnarounds in the industry.
Under his leadership, a twice-bankrupt carrier pulled itself together, upgraded its fleet and improved customer service. And he did it while throwing off folksy aphorisms comparing airlines to pizza.
But was it worth $34 million?
Continental, after all, is far from fixed, and that was obvious well before Bethune retired at year's end.
It faces many of the same fundamental problems it did in 1994. In the ensuing decade, low-fare carriers have chipped away at market share and driven down fare prices. While Continental lost money in three of the past five years, Southwest Airlines posted profits.
Excluding his $27 million retirement package, Continental last year paid Bethune $7.2 million in salary, bonus and other benefits, according to the company's filings with the Securities and Exchange Commission.
Southwest's chairman, Herb Kelleher, who helped found the airline that has changed the face of the industry, received $710,000. He also received stock options that may eventually be worth another $5 million, based on the company's estimate.
In fact, Southwest's six-member executive team cost shareholders $3.5 million, excluding options.
At Continental, the cost of the top six executives, excluding Bethune's retirement package, was $17.9 million. It would have been higher — $19.3 million — if current CEO Larry Kellner and President Jeffrey Smisek hadn't waived their bonuses.
Estimates are much higher
To be fair, options are a big part of Southwest's compensation plan, and using the company's highest estimates brings the costs more in line — about $18.9 million. Because Southwest stock went sideways last year, those options aren't going to pay out any time soon.
In other words, shareholders didn't get a return, and so executive pay was limited, despite the industry's best financial performance.
Continental shareholders, meanwhile, saw the value of their investment fall almost 17 percent last year.
Again, some perspective is needed. A 17 percent decline by airline standards isn't bad these days. Delta, just a few steps from bankruptcy, is the worst-performing stock in the Standard & Poor's 500 Index this year, falling some 60 percent.
Many of the initiatives begun under Bethune may help bring Continental out of its malaise. The airline is focusing on more profitable international routes and investing in more efficient aircraft.
Problems will continue
But it's far from fixed. As Continental was delivering Bethune's big check, it was asking its employees to surrender some of theirs. The airline pressed workers for $500 million in concessions and got them this spring.
Even before that, Continental workers earned less than the industry average. On an hourly basis, Southwest pays its pilots more.
That's because back in 1994, Continental's turnaround was financed in part by workers' sacrifices. They agreed to lower pay on the promise they would reap the rewards later.
Unlike Bethune, their reward has been more sacrifice. It's as if the money went straight from their paychecks to his. Perhaps they could have set up a convenient payroll deduction plan.
We hear a lot of blather from the airline industry about how difficult the business is. They can't control fuel prices, unions are too demanding, Sept. 11 hurt the industry.
A one-time event
Well, Sept. 11 was a one-time event that, from the industry's financial standpoint, is long gone. Fuel has been a component of flight costs since flight began. And labor? Well, obviously unions aren't the only driver of those costs. So what's the answer? Clearly no one knows. But that's the point. For $34 million, someone should.
Loren Steffy is the Chronicle's business columnist. His commentary appears Sundays, Wednesdays and Fridays. Contact him at [email protected]. His blog, Full Disclosure, is at blogs.chron.com/fulldisclosure.
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