Cost Reductions Update
11-10-2020 | 12:29 PM
#21
Thread Starter
Gets Weekends Off
Joined: Feb 2018
Posts: 1,264
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Just making sure this is posted on all pertinent threads and that no one forgets or isn’t aware.
Gary Kelly had access to $7.5 BILLION in low-interest government loans. The cost of an additional 10% pay cut to ALL employee groups is roughly $500 million. Do the math. Gary Kelly had available to him an amount of money that would have covered all of the concessions he’s seeking by 15X.
But, he turned down those government funds. Why? Because the terms of the loan were too “onerous”. Gary Kelly explains, “The terms of the government loan are pretty onerous ... I think we would much rather avoid those. And I think what's near and dear to shareholders' hearts is it puts restrictions on dividends, which I object to, and share repurchases."
Stock charts over cohearts, my fellow cost units. Simple as that.
Gary Kelly had access to $7.5 BILLION in low-interest government loans. The cost of an additional 10% pay cut to ALL employee groups is roughly $500 million. Do the math. Gary Kelly had available to him an amount of money that would have covered all of the concessions he’s seeking by 15X.
But, he turned down those government funds. Why? Because the terms of the loan were too “onerous”. Gary Kelly explains, “The terms of the government loan are pretty onerous ... I think we would much rather avoid those. And I think what's near and dear to shareholders' hearts is it puts restrictions on dividends, which I object to, and share repurchases."
Stock charts over cohearts, my fellow cost units. Simple as that.
11-10-2020 | 12:53 PM
#22
Line Holder
Joined: Mar 2011
Posts: 1,114
Likes: 38
Just making sure this is posted on all pertinent threads and that no one forgets or isn’t aware.
Gary Kelly had access to $7.5 BILLION in low-interest government loans. The cost of an additional 10% pay cut to ALL employee groups is roughly $500 million. Do the math. Gary Kelly had available to him an amount of money that would have covered all of the concessions he’s seeking by 15X.
But, he turned down those government funds. Why? Because the terms of the loan were too “onerous”. Gary Kelly explains, “The terms of the government loan are pretty onerous ... I think we would much rather avoid those. And I think what's near and dear to shareholders' hearts is it puts restrictions on dividends, which I object to, and share repurchases."
Stock charts over cohearts, my fellow cost units. Simple as that.
Gary Kelly had access to $7.5 BILLION in low-interest government loans. The cost of an additional 10% pay cut to ALL employee groups is roughly $500 million. Do the math. Gary Kelly had available to him an amount of money that would have covered all of the concessions he’s seeking by 15X.
But, he turned down those government funds. Why? Because the terms of the loan were too “onerous”. Gary Kelly explains, “The terms of the government loan are pretty onerous ... I think we would much rather avoid those. And I think what's near and dear to shareholders' hearts is it puts restrictions on dividends, which I object to, and share repurchases."
Stock charts over cohearts, my fellow cost units. Simple as that.
I think we need stickers and bag tags for the "Stock Charts over Co-hearts" mantra as well as picketing. With three years (and improving) of cash on hand this is such a slap in the face. I dare him to furlough on the 50th anniversary while celebrating as much.
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11-10-2020 | 01:11 PM
#23
Furloughed Again?!
Joined: Aug 2007
Posts: 4,948
Likes: 109
From: Boeing 737
I emailed my reps my sentiments earlier today. Also I had some ExTO fun filling out the employee survey and my thoughts on their party planning question while they are cutting pay and threatening furloughs.
The next anniversary/Christmas/birthday cards I get from “Gary” is getting returned unopened in another envelope.
I honestly believed there was truth to the culture and loyalty to avoid furloughs. That latest email ended that.
The next anniversary/Christmas/birthday cards I get from “Gary” is getting returned unopened in another envelope.
I honestly believed there was truth to the culture and loyalty to avoid furloughs. That latest email ended that.
11-10-2020 | 02:02 PM
#25
Line Holder
Joined: Apr 2019
Posts: 371
Likes: 2
this should be shared with every co-heart
Just making sure this is posted on all pertinent threads and that no one forgets or isn’t aware.
Gary Kelly had access to $7.5 BILLION in low-interest government loans. The cost of an additional 10% pay cut to ALL employee groups is roughly $500 million. Do the math. Gary Kelly had available to him an amount of money that would have covered all of the concessions he’s seeking by 15X.
But, he turned down those government funds. Why? Because the terms of the loan were too “onerous”. Gary Kelly explains, “The terms of the government loan are pretty onerous ... I think we would much rather avoid those. And I think what's near and dear to shareholders' hearts is it puts restrictions on dividends, which I object to, and share repurchases."
Stock charts over cohearts, my fellow cost units. Simple as that.
Gary Kelly had access to $7.5 BILLION in low-interest government loans. The cost of an additional 10% pay cut to ALL employee groups is roughly $500 million. Do the math. Gary Kelly had available to him an amount of money that would have covered all of the concessions he’s seeking by 15X.
But, he turned down those government funds. Why? Because the terms of the loan were too “onerous”. Gary Kelly explains, “The terms of the government loan are pretty onerous ... I think we would much rather avoid those. And I think what's near and dear to shareholders' hearts is it puts restrictions on dividends, which I object to, and share repurchases."
Stock charts over cohearts, my fellow cost units. Simple as that.
11-10-2020 | 03:46 PM
#26
On Reserve
Joined: May 2016
Posts: 86
Likes: 0
You can look at my previous post. I was in favor of giving something temporary (minus the fm language) more to provide optics to other employee groups than to create a true contribution to the organization.
I am one of those guys that came here for the job security and culture. I am not naive. I came through the regional side having experienced three mergers, a warn letter, a furlough, age 65, eight years as a regional FO and was part of the lost generation.
I came here thinking Southwest was different. I finished my Kool-aid and have now spit it out.
The very idea they would come back with a larger reduction the second time shows me true colors of the organization. And - while negotiating 30 additional new planes. The milk is not only spilled but soured. It cannot go back in the carton. How incredibly sad that GK blew his chance to become a legend and will instead be remembered during this time as just another slime ball, money grubbing CEO.
I will be waiting at the door for my WARN letter. Also, I pray that every pilot going over min guarantee while Dean is on furlough have their name published in a place where every SW pilot can see it. I don’t give a crap if you had three wives and have kids in college, you will not be hurting as badly as the guys on furlough.
#openthefurloughgate
I am one of those guys that came here for the job security and culture. I am not naive. I came through the regional side having experienced three mergers, a warn letter, a furlough, age 65, eight years as a regional FO and was part of the lost generation.
I came here thinking Southwest was different. I finished my Kool-aid and have now spit it out.
The very idea they would come back with a larger reduction the second time shows me true colors of the organization. And - while negotiating 30 additional new planes. The milk is not only spilled but soured. It cannot go back in the carton. How incredibly sad that GK blew his chance to become a legend and will instead be remembered during this time as just another slime ball, money grubbing CEO.
I will be waiting at the door for my WARN letter. Also, I pray that every pilot going over min guarantee while Dean is on furlough have their name published in a place where every SW pilot can see it. I don’t give a crap if you had three wives and have kids in college, you will not be hurting as badly as the guys on furlough.
#openthefurloughgate
On the other hand, these offers keep getting worse. Now we’re up to almost a 10% guarantee reduction PLUS a 2 year pay cut! We can all see that the previous voluntary programs plus the impending recovery throughout the year will leave us thin staffed at best by Q3 2021. I think we all want to help and definitely don’t want anyone to get furloughed, but they are digging a deeper hole in these negotiations with each and every email.
11-11-2020 | 10:15 AM
#29
777 - ret
Joined: Apr 2020
Posts: 863
Likes: 0
From: Waco CG-4 center seat
I think we need stickers and bag tags for the "Stock Charts over Co-hearts" mantra as well as picketing. With three years (and improving) of cash on hand this is such a slap in the face. I dare him to furlough on the 50th anniversary while celebrating as much.
Sent from my iPhone using Tapatalk
Sent from my iPhone using Tapatalk
If you guys were ALPA you could borrow the big inflatable rat.
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