Originally Posted by
Hedley
They are utilizing the lower MPG only because because they are temporarily willing to pay the workers to watch the crops grow for a few months while waiting for the rains to return so that they can determine the appropriate staffing level. If we find out this spring that we are in for a long drought, they will tell a big chunk of the workers to go home while those that stay will work long hours to pick what is there. In all but a COVID decimated climate, MPG levels at this point just wouldn’t matter. They are going to staff just enough to get the job done. We reduce training and vacation during the peak periods and offer premium pay to cover the flying. We don’t staff the airline for full peak coverage and then offer extremely low line values during the rest of the year. We staff somewhere in the middle. Peak season has greatly reduced training and vacation awards since we need everyone on the line flying hard. During the slow winter months we take advantage of the reduced flying and train aggressively to be ready for the next peak and offer the bulk of the vacation blocks, leaving enough people on the line to cover the flying. They don’t want to carry one extra employee. If demand doesn’t show a major improvement by spring/summer, we will quickly right size the company and 4,000 could be on the street by next fall.
Remind me again who’s bearing the cost for the migrant workers to sit around and watch the crops grow?
You’re missing the point. Reserves get pounded in the summer and winter holiday season. Other months they are utilized less. The company would benefit from lower MPGs. Anyone remember when the company opened the Bus domicile in IAH? A ton of people sat reserve waiting for the flying to ramp up. What about when they opened the 87 in IAD? Again, a bunch sat around on reserve while others endured horrid lines. How would those pilots made out if the company had the benefit of a low MPG?
You guys love those high furlough numbers. I’m surprised you haven’t thrown in the rumors of closing hubs that were being pushed during and before the vote. Delta just announced they have $21,000,000,000 in liquidity and expect to be cash flow positive by next spring. I fully expect us to be in a similar position. Do you really think we are going to cripple this airline with mass furloughs when SWA is entering ORD and IAH if our burn rate is zero to positive? My guess is United will furlough 2000, maintain this agreement, and smile all the way to the bank.
We’ve been Variabilized.