charlie1017
Well-Known Member
Geez, I'll bring some popcorn and coke! LOL
The first basic rule of investing is that it carries with it the danger of loss. Shareholders have risked their own money with the expectation that they will enjoy a reasonable rate of return on that money should the company be successful. If the company is not successful, the shareholders lose their money. The shareholders weighed the odds and took the risk. After years of losing money, the company is becoming successful, and the shareholders are entitled to their payout.
Contrast that with the employees, who are providing their time, skills, and labor in exchange for a salary. Where is the employees' investment?
Where is the employees' risk? If United went belly up tomorrow, the shareholders would lose everything they have invested, while the United employees would leave with the same skills they brought with them, plus the knowledge, experience and training that they have acquired at United's expense.
Some will argue that the employees have invested in the company via wage concessions. That is nonsense. A wage concession is not an investment. A wage concession is an agreement to take less money for services. For some unknown reason, the United employees agreed to take less money in return for shares of stock. In other words, they gave up income in exchange for risk. Why they did so is beyond my understanding.
The way I see it, the investors and shareholders were the ones who saved United by providing capital at a time when the conventional wisdom advised against investing in airlines. The employees need to remember that. You start screwing your shareholders with strikes, slowdowns and other job actions, and they may not be around the next time United finds itself in financial trouble. Then where will United be?
Who let Frank Lorenzo in here?![]()
nicely said!That I actually agree with! Shareholders most certainly do deserve a return on their investment.
Their investment is in the training & time it took to become qualified FOR their job.
At United's expense? As though the job skills the employees posses haven't brought any income to United?
If UAL goes Chapter 13, the pilots and F/As will have to start over at the bottom of another senority list (if they choose to continue to be a pilot or a F/A). They will NOT be compensated commensurate with their years of experience the way a senior manager can go to another company in a management position relative to what they were holding at UAL.
When the company you work for goes T.U., you have to find a new job. That can mean possible relocation, which can mean uprooting your whole family and having to sell your house.
That sounds like a lot of "risk", or potential negative consequences, of UAL going under.
It's beyond mine too (accepting stock in return for concessions), however less money in my pocket means that the company is paying me less, therefore there's more money in the company's pocket. So, in one way of looking at it, the money that I should have made is now in the pockets of the company, so I've made a financial investment in the company via less wages, not in stock purchase. Just another way of looking at it.
They certainly did contribute greatly by providing very necessary capital. And the employees contributed with wage cuts and by continuing to come to work. There's no law forcing an employee to come to work, and if they'd all quit, UAL would have had a boatload of new expenditure via training/recruiting for new employees.
Nobody wants job actions. Nobody.
But remember just as without shareholders & investors a company can't survive, without employees willing to do the job (and do it well enough to make people want to fly there again) the airline won't be around either. It's kind of a symbiotic parasitic relationship. We all need each other, and we need to work together to make the company great. When that happens, everyone wins.
After years of losing money, the company is becoming successful, and the shareholders are entitled to their payout.
Some will argue that the employees have invested in the company via wage concessions. That is nonsense. A wage concession is not an investment. A wage concession is an agreement to take less money for services. For some unknown reason, the United employees agreed to take less money in return for shares of stock. In other words, they gave up income in exchange for risk. Why they did so is beyond my understanding.
The way I see it, the investors and shareholders were the ones who saved United by providing capital at a time when the conventional wisdom advised against investing in airlines. The employees need to remember that. You start screwing your shareholders with strikes, slowdowns and other job actions, and they may not be around the next time United finds itself in financial trouble. Then where will United be?
Employees invest their life in a company. You say a 15 year captain doesn't "lose" anything if he gets laid off because he still has his knowledge and skills. I say #### you to that.
That 15 year captain came to United with his training and experience. He left with more training, more experience, and at least one type rating that United paid for. What did the Captain lose?
He lost 15 years senority!
Do you understand that if a pilot leaves an airline s/he starts over at the bottom of another airline's senority list?
Therefore that 15 year United pilot becomes a 1st year pilot somewhere else. Just like everyone else in his/her new-hire class. His/Her 15 years at UAL gave them flight hours, and that's about it. That pilot is NOT compensated for their years of experience! They're on 1st year pay again, just like everyone else. There's no lateral moving from company to company for a pilot like management does, it's back to the bottom.
Raiding the liquor cabinet is a good way to get fired
Knowing this, why would any airline employee deliberately sabotage their employer, especially when they know that they have to start all over again if their employer fails?
They'd rather face the prospect of the company going under and having to find a new job, than living/working under the proposals set forth up until that time.
If they're to the point where they'd rather find a new job, then do it! Just walk away. Why destroy something for someone else that might be perfectly happy?
Here's the question of the day.
Is the Railway Labor Act outdated?
Should we be allowed to drop trow and strike like European transportation labor can?