Planemaker From Tuvalu, joined Aug 2003, 7093 posts, RR: 34 Posted (11 years 10 months 2 weeks 4 days 2 hours ago) and read 4235 times:
Interesting article about the SAS restructuring. I didn't know that management had to deal with 39 unions - North American airlines have it easy!
"By early next year, SAS Group should have reduced its cost base by 45% following a 14bn Swedish kronor (£1bn; $1.8bn) cost cutting manoeuvre, said Soren Belin, executive vice president in charge of airline strategy and coordination.
Last week's deals ended months of wrangling with the 39 trade unions that represent SAS staff in Denmark, Sweden and Norway.
At some point a deadlock was broken when the management threatened to close down the whole airline and fire all Swedish and Danish staff, then create a new carrier and rehire by offering individual contracts, the Danish newspaper Politiken reported."
Bofredrik From , joined Dec 1969, posts, RR:
Reply 2, posted (11 years 10 months 2 weeks 4 days 1 hour ago) and read 4106 times:
What kind of SAS will we have in the future? This new deal between HQ and the staff is bad for the... staff. For the first time in SAS long history will the salaries be reduced. But not for all. The CEO have just got + 20 % himself. What kind of signals will that send trough the organisation? SAS have a danish CEO who have no experience from the trade and i think they instead need a more open and positive person with knowledge about airlines. But right now is it true to say that SAS is not what it used to be. "Airline of the year" once but not in 2004 anyhow.
747400F From , joined Dec 1969, posts, RR:
Reply 3, posted (11 years 10 months 2 weeks 4 days ago) and read 4027 times:
Sorry but the CEO seems to be just what SAS needed. The high salaries have been reduced - the union stronghold (SAS=Strike Always Strike) has been broken. They now have a fighting chance - the day after the uniondeal was struck he even talked about buying 4 extra longhaul planes.
Playing the fire-all-and-rehire-them-card was a great move - and perfectly legal under Swedish law, so no problem there.
The CEO has taken a paycut this year just like everyone - he only had a bonus from LAST year paid out this year according to his contract.
Prebennorholm From Denmark, joined Mar 2000, 7037 posts, RR: 53
Reply 5, posted (11 years 10 months 2 weeks 4 days ago) and read 3981 times:
The main thing is that now it is very likely that there will be a SAS in the future.
In case of business as usual a lot of unpleasant things would begin to happen in months rather than years:
- Oil companies would require cash prepayment of fuel around the world.
- Leasing companies would become uneasy and demand 6 months prepayment of leasing costs.
- Credit card companies would stop renewing crew credit cards.
- Bank advisors would move into the SAS HQ and run the company finances. Sell off planes, cancel leasing contracts etc.
- Etc. etc.
That was what would have happened. The SAS management simply does not have the power to be able to run it into a "Swissair trap". Besides that airline creditors like banks, leasing companies, oil companies etc. learned a lot from the Swissair crash. They will take control in time and manage a decent shutdown with minimal damage to themselves.
But that's not the case now. SAS seems to have been saved.
This new deal between HQ and the staff is bad for the... staff. Right. If they can switch to another company and enjoy a more prosperous future.
Happy landing, Preben Norholm
Always keep your number of landings equal to your number of take-offs
DC9 From Sweden, joined Feb 2000, 255 posts, RR: 2
Reply 6, posted (11 years 10 months 2 weeks 4 days ago) and read 3932 times:
I refer to this article in Swedish:
In my eyes, a CEO who runs over the employees completly is not worth of being a CEO. Many of those I know, from top to bottom in the airline, are FULLY aware of what is needed to be done to save the airline, but the way Lindegaard is running over them is what p***es them them most and that is why the oposition arises.