Originally Posted by
CanyonBlue
Unfortunately any new contract with Pinnacle management looks farther and farther away.
Some of the latest company attempts to cover the CFO's auction rate securities that are coming due.....
1. Firing half the base management staff and forcing the others to work twice as much for less money.
2. Canceling 401k match to employees.
3. Furloughing mechanics and trying to find someone to finance their spare parts operation.
4. Forcing a 401k change from Diversified Investments to Fidelity, in the meantime the company is raking in the interest off the employees money everyday. (Anyone have money at Fidelity yet?) - Must be lost in the internet black hole somewhere...
5. Switching employee payroll to 'in-house' so they can keep the payroll funds another 5 days(gaining interest), which has been a debacle for the people trying to run the program in Memphis.
There is no way this management team is going to write a check for a new contract with big retro pay right now. Just the reality of what they are doing....
Hard to believe they got themselves sooo far down this road.
This is the PERFECT time to write the check....they have money now and can give what will seem a decent contract, especially in these economic times...then, when the payment comes due in 2010, they can scream "it's the evil, greedy pilot's fault...." and come to us for concessions or B-ruptcy. When times are bad, you buy on the cheap...this is a good opportunity for mgmt. Think about this, if we get released the company is hosed. No way we settle for industry average if they take it all the way to the brink of a strike. MGMT will have lost if it comes to release. They pay now, then they've gained 4 years on an old contract and could possibly win concessions in less than a year! win for mgmt.