Originally Posted by
Denny Crane
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This is where I think you are wrong. I do not think this will happen.
By giving a big raise to the non contracts the company achieves a number of goals. 1. Make the non contracts happy with getting a close to 18% raise in one year. 2. Cutback of the non contracts PS. 3. Can now avoid 3.b.4 for at least a couple of years if not more by not giving out any raises because they gave such a big one. 4. This has the secondary effect of essentially taking the PS away from the non contracts for nothing.
Denny
I disagree Denny. The non-contracts realize they got no pay raise at all. They just got their profit sharing changed to pay rates. Will they tolerate no pay raises for a couple of additional years? I don't think so...not without a demonstrable change in enthusiasm.
That's secondary however IMO. The serious leverage for us is maintaining our contract. Even IF there are no more 3.B.4 raises, the profit sharing and current provisions will really hurt management as the training churn begins in full force. We truly have time on our side.
Carl