Possibly one reason why people are suspicious
02-15-2018, 09:01 PM
#1
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Joined APC: Nov 2015
Posts: 1,120
Possibly one reason why people are suspicious
Ok, I'm not claiming conspiracy theory here, but I do think it's something that needs to be at least acknowledged as something that simply doesn't seem right. Lots of people just don't feel right about the TA and maybe here's part of why it just doesn't feel good.
Per the TA roadshow, the company gains about $19 mil per year, or about $60 mil over 5 years, from productivity gains.
But our new CEO is getting a $2 mil annual pay raise.
That's 10%. In MBA-speak and in the business accounting world, 10% of anything is a "big deal". Pick your metaphors. 10% "moves the needle". 10% "makes or breaks the deal". Whatever words you use, the lost QOL items in the contract get the company back a measly $19 mil per year, of which the incoming CEO takes 10%. Any other major company that offered an incoming CEO 10% of the productivity gains resulting from a crucial new employee contract would be rigorously questioned.
I'm sorry, but it simply makes NO sense. I'm not talking about just Ted's $2 mil salary bump, but the entire process that led us to a disappointing TA after 2 years of business plan disruption, that then supposedly pays off only $19 mil/year to the company. All the hard feelings, the number of people quitting, the fallout and consequences of the alleged work action last summer, the difficulties hiring and growing, over $19 mil/year (minus $2 mil)? There's no business case for that.
I think ALPA has worked real hard and I fully expect the TA to be approved because it's likely going to be a significant improvement for most spirit pilots. HOWEVER the numbers still won't add up, and spirit pilots will still have every reason to remain suspicious of everything management says, for both the duration of the contract and the duration of the next CEO's tenure. That's not the way to build a solid company, treating the core operations skilled workers of a company as if they're just low-bid contractors.
Plus the elephant in the room, again... 10% of the gains the company gets from this contract are going into Ted's pocket. That makes ZERO business sense whatsoever unless there's far more at stake than we're being told. $19 mil/year efficiency gains for a company the size of Spirit just doesn't justify the business plan disruption and risk the company has endured since the amendable date. There is no business case possible for the last 2 years, over a matter $19 mil per year, $2 mil of which is going to the new CEO.
Suspicious? You have every right to be, regardless of how you vote, because we don't have the whole picture. You don't see other successful and happy companies doing this sort of thing with these numbers. Again, I'm NOT saying to vote no since the new contract has some very very important protections that we as pilots need because of the volatile nature of our profession. But the business case that allegedly justifies the last 2 years disruption over $19mil per year (minus Ted's 10% cut) doesn't make any sense.
Call it a conspiracy theory or not, the long-term health of a company working this way should absolutely be a legitimate question rather than dismissed as crazy talk or conspiracy theory.
Per the TA roadshow, the company gains about $19 mil per year, or about $60 mil over 5 years, from productivity gains.
But our new CEO is getting a $2 mil annual pay raise.
That's 10%. In MBA-speak and in the business accounting world, 10% of anything is a "big deal". Pick your metaphors. 10% "moves the needle". 10% "makes or breaks the deal". Whatever words you use, the lost QOL items in the contract get the company back a measly $19 mil per year, of which the incoming CEO takes 10%. Any other major company that offered an incoming CEO 10% of the productivity gains resulting from a crucial new employee contract would be rigorously questioned.
I'm sorry, but it simply makes NO sense. I'm not talking about just Ted's $2 mil salary bump, but the entire process that led us to a disappointing TA after 2 years of business plan disruption, that then supposedly pays off only $19 mil/year to the company. All the hard feelings, the number of people quitting, the fallout and consequences of the alleged work action last summer, the difficulties hiring and growing, over $19 mil/year (minus $2 mil)? There's no business case for that.
I think ALPA has worked real hard and I fully expect the TA to be approved because it's likely going to be a significant improvement for most spirit pilots. HOWEVER the numbers still won't add up, and spirit pilots will still have every reason to remain suspicious of everything management says, for both the duration of the contract and the duration of the next CEO's tenure. That's not the way to build a solid company, treating the core operations skilled workers of a company as if they're just low-bid contractors.
Plus the elephant in the room, again... 10% of the gains the company gets from this contract are going into Ted's pocket. That makes ZERO business sense whatsoever unless there's far more at stake than we're being told. $19 mil/year efficiency gains for a company the size of Spirit just doesn't justify the business plan disruption and risk the company has endured since the amendable date. There is no business case possible for the last 2 years, over a matter $19 mil per year, $2 mil of which is going to the new CEO.
Suspicious? You have every right to be, regardless of how you vote, because we don't have the whole picture. You don't see other successful and happy companies doing this sort of thing with these numbers. Again, I'm NOT saying to vote no since the new contract has some very very important protections that we as pilots need because of the volatile nature of our profession. But the business case that allegedly justifies the last 2 years disruption over $19mil per year (minus Ted's 10% cut) doesn't make any sense.
Call it a conspiracy theory or not, the long-term health of a company working this way should absolutely be a legitimate question rather than dismissed as crazy talk or conspiracy theory.
02-15-2018, 09:31 PM
#2
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Joined APC: Nov 2015
Posts: 104
Larry Kellner, an accountant, took the top spot at Continental when the eventual merger was far enough along that someone with his expertise was needed to get the process to the next step. After he line itemed it all up, Jeff Smisek, a merger acquisitions lawyer, took control and negotiated the final deal with United. Ted Christie is our Kellner; our Smisek remains to be seen. Spirit is being methodically set up for a marriage with somebody; that’s why you should vote yes for the better protections TA1 affords March 1. Bob cleans up the operation, Ted gets the the books in order, and blank negotiates the deal.
02-16-2018, 06:29 AM
#3
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Joined APC: Jan 2018
Posts: 39
Originally Posted by flensr
Per the TA roadshow, the company gains about $19 mil per year, or about $60 mil over 5 years, from productivity gains.
I don't think anyone actually believes that math, other than maybe our NC.
12M for a 4B company is a laughable estimate. They'll save 12M over their first weekend of weather this summer.
02-16-2018, 02:40 PM
#6
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Posts: 195
The funny thing is, the company will save some money with the scheduling section of this contract. The real saving will be unrealized losses from multiple melt downs a year. Those will never be seen on a balance sheet.
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02-16-2018, 02:46 PM
#7
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Joined APC: Feb 2018
Position: I Voted Yes and it Feels Good
Posts: 51
Originally Posted by NKSpilot
If this is such a great one-sided deal for Spirit Airlines Inc, may I suggest you invest all your money in SAVE.
02-16-2018, 05:58 PM
#9
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Joined APC: Oct 2015
Posts: 333
Originally Posted by SourGrapes
Happy Grapes, that's pretty good.....u should of used Sweet Grapes.....see sweet is opposite of sour, still funny though
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