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F9: Judge OKs Concessions For A/C Cleaners  
User currently offlineEnilria From Canada, joined Feb 2008, 7111 posts, RR: 13
Posted (5 years 8 months 1 week 2 days 11 hours ago) and read 1456 times:

The approved agreement with the appearance workers and aircraft cleaners was filed in the docket today.

My two cents...The aircraft mechanics, who will likely be largely outsourced, are taking a much, much greater hit than anybody else and this is another IBT represented group to add to the sting.

I can imagine the speech to employees on this agreement, "Times are very hard, our whole industry has been hit by one catastrophe after another and the sum of those events has landed us in bankruptcy. We are all making hard sacrifices, and as a result we need to cut your wages by 1/17th."

6%???? You'd think with their cash position getting fairly low they would have put the brakes on this agreement to get something much deeper, 15-25%? Well, at least in 2012 they pick up a hard won 1% in savings.

Wage reduction for period 12/12/08 through 12/12/12
The IBT agrees that the wage rates for all Aircraft Appearance Agents and
Maintenance Cleaners as set forth in Article 24, and the Addendum to
Article 24, of the current Agreement shall be reduced as follows:
December 12, 2008 through December 11, 2009 - 6%
December 12, 2009 through December 11, 2010 - 6%
December 12, 2010 through December 11, 2011 - 3%
December 12, 2011 through December 12, 2012 - 1%


4 replies: All unread, jump to last
 
User currently offlineF9Animal From United States of America, joined Dec 2004, 5026 posts, RR: 28
Reply 1, posted (5 years 8 months 1 week 2 days 11 hours ago) and read 1416 times:



Quoting Enilria (Thread starter):
6%???? You'd think with their cash position getting fairly low they would have put the brakes on this agreement to get something much deeper, 15-25%? Well, at least in 2012 they pick up a hard won 1% in savings.

Cash position is one thing, but nobody really knows what they have up the sleeve. If they wanted to go for 15-25%, they could have. Which leaves you to wonder if they have a plan and obviously a goal to exit bankruptcy.

Quoting Enilria (Thread starter):
I can imagine the speech to employees on this agreement, "Times are very hard, our whole industry has been hit by one catastrophe after another and the sum of those events has landed us in bankruptcy. We are all making hard sacrifices, and as a result we need to cut your wages by 1/17th."

There will obviously be some sort of communication to employees regarding this. However, I think it is obvious to the employees that the cuts are needed, and should not be a shocker at how difficult the economy is right now. I do know that if F9 overcomes this difficult envionment, they will one day bring them back to their scales and take care of them. F9 DOES treat their employees very good. For example, they have shown commitment to the employees and their customers after the tragic events of 9/11. They were one of the first to pay back the ATSB loan. They also did/do yearly evaluations on pay, and never once hesitated to raise the pay if the job deserved higher wages. They have a nice package for employees (medical, dental, vision, 401k). F9 is one of the finer airlines to its employees.

I would be the first to tell you that I would be hurt by a paycut. I would be the first to tell you that I would not volunteer a paycut. I would be the first to tell you that I do not agree with paycuts. But, I would also be the first to tell you that I would understand the need to cut my pay if I was still at F9. The employees will not deter from what they do best. They will keep fighting this tough economy, and they will weather the storm. Yeah, they are backed into the corner in the 7th round. However, they pack on heck of a punch, and they have the heart as a company and airline to come out of this bout winning. They are going to last the full 12 rounds......

Please excuse the spelling, as I typed this out pretty quick, and the spell check is not working!



I Am A Different Animal!!
User currently offlineKing From , joined Dec 1969, posts, RR:
Reply 2, posted (5 years 8 months 1 week 2 days 11 hours ago) and read 1410 times:

Well, that's what happens when you are covered by a bargaining agreement. The aircraft appearance agents were already some of the lowest paid agents at Frontier. And you think Frontier should've cut their pay by 25%? I don't think so.

User currently offlineEnilria From Canada, joined Feb 2008, 7111 posts, RR: 13
Reply 3, posted (5 years 8 months 1 week 2 days 11 hours ago) and read 1376 times:



Quoting F9Animal (Reply 1):
Cash position is one thing, but nobody really knows what they have up the sleeve. If they wanted to go for 15-25%, they could have. Which leaves you to wonder if they have a plan and obviously a goal to exit bankruptcy.



Quoting F9Animal (Reply 1):
F9 is one of the finer airlines to its employees.

BTW, if memory serves, the pilots also surrendered only their company 401K match which was 6% or less as their concession.

I agree with all of that and I know we usually disagree on F9 and I know how painful pay cuts are, BUT as you say you understand the situation.

Regardless of what they have up their sleeve and even as close as you are to the situation, in that you are personally impacted, you must agree that it is hard to imagine how a 6% paycut is going to put the company on track and make it profitable. Labor is maybe 30% of costs, that means an improvement of 2 margin points which isn't going to solve anything. It's almost pointless to waste the time for so little.

Even if they have a grand plan, it would work even better with pay cuts that were substantial.


User currently offlineEnilria From Canada, joined Feb 2008, 7111 posts, RR: 13
Reply 4, posted (5 years 8 months 1 week 2 days 11 hours ago) and read 1372 times:



Quoting King (Reply 2):
Well, that's what happens when you are covered by a bargaining agreement. The aircraft appearance agents were already some of the lowest paid agents at Frontier. And you think Frontier should've cut their pay by 25%? I don't think so.

The pilots gave back a similar amount as well. The point is just that the situation is more dire than 6% and everybody should participate somewhat equally.


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