Originally Posted by
ColdWhiskey
Carl,
I have a couple of quick questions. From your profile (747 Captain) and other posts (Delta related) I have assumed that you are previous Northwest. Is that correct or not?
Did not the Northwest pilots and mechanics negotiate a pay and benefits package reduction in exchange for NWA stock in 1993/94 as part of a NWA restructuring to prevent bankruptcy at that time?
"1993 JULY: The Air Line Pilots Association's Master Executive Council averts a NWA Chapter 11 bankruptcy filing by voting 24-1 on behalf of its members to accept concessions totaling $365 million the first year. The other unions, lenders, and vendors must agree to the restructuring by August 1. Concessions over three years total $886 million. In exchange for their concessions, employees get three seats on the board of directors and up to 37.5 percent ownership of the company."
As a wide body captain, I presume you were employed at NWA during that timeframe. Is this a correct statement?
Yes, the pilot's union voted for it. After years of uninterrupted increases in pay and benefits, the union agreed to concessions along with an equal amount of ownership and control of the airline. It was a direct investment that paid off very well when the stock over doubled in one year. It was also done during a weak revenue environment for the industry.
As I predicted in an earlier post, some Frontier guys will try to justify what you've done by portraying as hypocrites anyone who has ever given salary back for any reason regardless of the revenue environment. In your world NWA in 1993 is the exact same thing as you today. As predicted.
Carl