Originally Posted by
SpecialTracking
Let's assume a downturn does occur. Why would we be "beating back concessions?" Unless the company uses Ch 11 against us, there is absolutely no reason to accept concessions. Even then we could say no and put it in the court's hands. After watching how our concessions were spent during the last decade, I wouldn't give them a case quarter.
We continue to operate under a concessionary contract. I'm sure the company is happy to extend a contract that we are still trying to claw out from bankruptcy.
What amazes me is as soon as the $$$ rumor is flashed, many will grab their abacus and then start defending their vote on rumored TA contents with all kinds of future hypotheticals.
I'll follow your hypothetical. I agree that outside of bankruptcy we wouldn't need to accept a concessionary deal. But the company would most definitely not be offering up any improvements that cost them money. So NO improvements in reserve, and certainly no pay raises. We would be stuck with what we have for YEARS in a negotiating stalemate while the company shrinks and bumps. So rather than waiting out those years at 15% above current contract, we would be stuck with the same reserve rules and no increase in pay. That's a HUGELY expensive mistake. Who knows, maybe the economy goes crazy over the next 3-5 years and we are able to extract more gains by waiting. That's the bet. Is the negotiating landscape going to be better or worse over that time period. I have my opinion....