Originally Posted by
BigHitterLlama
Ok maybe you guys can help fix my apparent misperceptions about this situation.
If this government payroll GRANT is to cover PAYROLL based on worker compensation from 1 April through 30 September 2019, why do we need to reduce our PAYROLL expenses now. The government is paying the salaries... why does delta care how much the government is paying their employees?
Speak slowly and use small words. I’m not that smart.
The grant money is equal to the payroll for 6 months. What mgmt is apparently trying to do is “save” payroll costs to stretch those dollars further. Or put another way, use “saved” payroll costs for things other than payroll.
I get it, there are other overhead costs, separate from operating costs (fuel, maintenance, parts, etc), but the grant money was not intended to cover anything other than payroll. The Loan money (with the string of equity stake) is for those costs, but they don’t want the strings, thus the pressure on payroll.