Quote:
Originally Posted by Tigerpilot1995
UPS is acting like a rabid dog that has been backed into a corner. Expect nothing rational and it to get very ugly. They have already come to the IPA asking for relief on this "open time" issue. I don't think the future is very bright for this airline.
I heard the same thing from the IPA side. I'll try to track down the source.
Essentially we are seeing a financial excercise turn into divorce proceedings, whereas; the endgame is now uncertain, both sides are going to hunker down with their positions of difference, and ill-will will become more and more galvanized the longer this accounting excercise continues.
Fair to say, the MOU presented savings and some unintended consequences. For instance, reduction in payroll headcount was offset by the high concentration of RDG participants in ANC causing a shortage of line holders and thus negating savings.
Taken one step further, UPS has never furloughed. This is uncharted waters for the airline segment. In conjunction, the mechanics (teamsters) are nearing impasse with the company which may be the driving force behind the "scramble" to open our collective bargaining agreement. In my opinion, they seek concessions in order to increase their counteroffer to our mechanics before an impasse is declared.
Coming full circle, this accounting excercise of "furlough" may produce savings but because it is a new event on the airline side the unintended consequences may produce a variety of expenses which may more than negate proposed savings. I acknowledge that we have more bodies than we have seats right now, however the MOU or other possible ideas show that there are creative ways aside of furlough to mitigate this that do not involve opening up the cba.
I speak only for myself in saying, to make money you need to spend money. If cost control is an issue; than issuing bonuses, reinstating raises and 401k matches, and raising dividends should commence after cost containment is complete as opposed to using jobs to finance them.
FF