Trouble at Southwest ??? Maybe.

Malko

Malko

ughhh
Staff member
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Southwest offers buyout program

No. 6 U.S. airline will offer voluntary buyout packages to 33,000 employees.
May 27, 2004: 7:26 PM EDT

CHICAGO (Reuters) - Low-cost carrier Southwest Airlines on Thursday said it offered voluntary buyout packages to most of its employees as the industry struggles to battle high fuel prices.

The No. 6 U.S. airline said employees who have worked at the carrier for at least a year -- or 33,000 of its 34,000 workers -- are eligible for the buyout.

A spokeswoman said there was no maximum to the number of workers the company would accept for the buyout program.

The Dallas-based company sent a letter to employees on Thursday offering them three different packages -- with various combinations of cash, health care benefits, and travel privileges -- depending on years of service.



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For people that are fairly close to retirement or were leaving soon any way (that would be me), it's not a bad deal. For the average working person, it's not all that hot. I know a lot of guys that were excited to hear it was coming out, but then they were let down when they saw what it actually was.
 
I hear nothing but good things about SWA, just curious if things are starting to look not so rosey or if they are trying to avoid having to layoff/furlough people ?
 
I'd go with the later. As far as I know, we are no where NEAR laying off anyone (and we're hiring pilots like no tomorrow, so they aren't going anywhere). It's more of an attempt to both streamline the operation and get some of the higher paid, high seniority people off the payroll.
 
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. . . just curious if things are starting to look not so rosey or if they are trying to avoid having to layoff/furlough people ?

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I'm sure there are some who would love to hear the latter!!!
 
Just being smart, if you ask me. Southwest is hedged for gas at about $25 a barrel, but that will run out sooner or later. What that means is that they gas cost will jump by like two thirds if gas stays where it is.

No airline, no matter how good they are, can deal with that without having to do something. By getting this out of the way right now, SWA stays ahead of the curb.

Smart thinking on the part of Southwest. I've said a hundred times that I don't like flying on them. But if this is the way management acts, I sure as hell wouldn't mind working for them someday. Although it would be nice to jumpseat across the Pacific and they can't give me that!
 
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Although it would be nice to jumpseat across the Pacific and they can't give me that!

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Three words:

Boring as hell.

And uncomfortable.
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Trouble? No, not at all.

Being smart and cutting the fat they are developing before it starts to affect the bottom line in the long term? Yes.

This is mainly for the employees who have something else on the side and were not planning on staying for decades or were open to leaving SWA long before retirement age anyway. I know at least a half dozen employess who have a side business (like real estate) or have other jobs but stay at SWA for the benefits. They are encouraing those who have had a desire to pursue other career avenues or interests to take advantage of the "Freedom '04 Plan". With the gate readers online in the CSA dept, they don't need as many CSAs. We are also over staffed in a few areas (1800 from what I hear), and this is a way to encourage they employees to opt out on their own and help the company slim down the fat.

The three packages include varied levels of time limited medical coverage and either $500, $750 or $1,000 for every year of service as a severance, plus some flight benefits too. This is heaven sent! Instead of quitting I can now retire and take a really nice hunk of cash with me when I go. This place is truly a great company to work for and I will sorely miss it and all my ramp rat pals. Between this and my gift of company profit sharing account, I could never have imagined getting so much free money. Thank goodness the Freedom '04 plan states you are able to reapply for another SWA job after 12 months if you so desire and if you have a good record, they will take you back. That severance money will cover the cost of my 737 type rating and then some.

Counting down the days till (my first) retirement :O)
 
Like mentioned above..it is a smart plan. It helps get all the senior employees with fact checks out of the company nicely allowing them to bring in new employees at lower wages. Very smart indeed. Remember..WN has never laid off employees in their history. These plans are a great benefit to the company and shareholders interest!
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The three packages include varied levels of time limited medical coverage and either $500, $750 or $1,000 for every year of service as a severance, plus some flight benefits too. This is heaven sent! Instead of quitting I can now retire and take a really nice hunk of cash with me when I go. This place is truly a great company to work for and I will sorely miss it and all my ramp rat pals. Between this and my gift of company profit sharing account, I could never have imagined getting so much free money. Thank goodness the Freedom '04 plan states you are able to reapply for another SWA job after 12 months if you so desire and if you have a good record, they will take you back. That severance money will cover the cost of my 737 type rating and then some.

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Same here. I'll miss my friends on the ramp, but I won't miss the heavy bags or the FL heat.
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I rushed home to read the fine print about coming back. When I saw that I could re-apply a year later (or in my case probably closer to five), I was like "where do I sign?" As a fall back from MAPD, the $$$ from the package would give me enough to get my CFI/CFII/MEI. And I don't have to stretch my pink passes out anymore.
 
Southwest has done this many times over the years. It gets senior people out of the picture while keeping them happy, allowing for a more junior, lower paid workforce. In no way does this equal bad news, things are still going well for SW.
 
I couldn't believe the news when I had heard it either. It's a great option to have especially if your still in school or finishing up flight training. Take the money and health insurance offered and run, go get those ratings!! More than likely I will!
 
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