ILM
Investors Lives Matter

 

So how about he trades that 10% for stock.

win win

 

The same tired excuses you hear from the mouths of the CEO’s of every publicly traded company anymore. It’s why Boeing is a hollowed out shell of what it used to be. Same with Ford and GM and GE and the list goes on and on. It’s why American workers are so justifiably furious. We have a stake in this economy. We live in it and try to raise our kids in it and hope one day we can retire with enough to live on. We see our wages stagnating but the stock market just keeps roaring along and the buybacks continue and the swindle continues.

**** Gary and his force majeur clause and his string of broken promises. I want him to have to sit down in front of the board and explain that he failed. I want all those gladhanders on the board to know that we know exactly what they’re trying to do. This goes to the heart of the swindle that’s been playing out right under our noses for the past thirty or forty years.

Why we’re not picketing over this is a freaking mystery to me.

 

It is a freaking mystery.

 

If you think that the clause is a non starter then vote NO. If you think that the company is bluffing then vote No. if you think that 10% is unreasonable then vote no. I’m with ya, but do you really want to go picket because the company is ASKING you for 1/10th of your very good salary when the US airline industry is collectively losing around 10B/Quarter?

SWA is the most financially prudent airline in history, which is why many of us came here. There is so much uncertainty right now that I would’ve been surprised if they didn’t come asking for concessions. The reason investors go for our convertible bonds or purchase our shares during tough times is because of our fiscal responsibility. Gary is walking a tight rope with a board and shareholders to answer to. I, for one, believe that every month is getting better and next year will look different. Bastian is predicting that Delta will be cash burn zero by spring. If they are, then we will be also. I believe that VSP, EXTO, ETO, and natural attrition will leave us thin staffed by next summer. They want all pilots on hand in order to attack weaker airlines. Why furlough pilots in Jan when you are likely to need them 6 months later? It doesn’t make mathematical sense.

I understand that the company needs to be cautious and I respect the wording from the union. Deferments over concessions. History at other airlines has shown that the culture changes for the worse any time a concession is given or taken in a bankruptcy. A lot of efficiencies noticed due to motivated employees begin to disappear. So motivate us, treat us like investors in LUV. If they want us to invest 10% in our airline, then give us a chance to earn a rate of return on that investment with some form of stock/warrant/option. Some NO concessions folks may not entertain this, and I get that. But it’s all the language for me.

 

I’m not being asked to help. I’m being asked to donate. Sorry, I don’t work for a charity. I work for arguably the most successful airline on the planet.

However, I could be persuaded to lend money or talk deferred compensation with appropriate returns down the line. With this request, there is no return - just 10% of your pay and retirement contributions gone.

Ask me to invest in a Fortune 500 company with reasonable returns, I’ll give it a due thought. Ask me to donate money to a Fortune 500 company, that’s ridiculous. See the difference?

The answer is no.

 

I agree, the optics would suck. At the same time, you can't deny that we're losing the message battle and haven't done a very good job of putting our side of the story out there.

That little Dave Ramsey hit piece on our pilot group was no accident.

 

they’re not asking because it helps the company, they’re asking because they can use the current situation to justify a pay cut for pay cut’s sake. I will be a furloughee and my vote is no.

the mechanics refused to bring it to a vote. What if we take cuts and the FAs don’t, or the other way around. either furloughs don’t happen because they need to fly the schedule or the lack of staffing in one group is reason for force majeure and they furlough the group that took concessions anyway. This is a very likely scenario.

PS. It’s not ten percent of our salary, it’s an additional ten percent on top of approximately 20% we’ve already endured due to over-hiring and the max debacle. That’s enough.

 

BUT! If we get paid less, then we pay less in taxes. Maybe we’ll even drop down into a lower tax bracket and end up taking home more $ than we did before the 10% pay cut.

Bahahahahaaaa.

 

Well said, RJS!