United777
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Alaska Airlines Making Cuts?

Wed Jul 02, 2003 9:45 am

Just the other days I was watching a media report here in Seattle about Alaska Airlines making cuts to employee wages and also cuts on flights such as no in-flight meals even in first class being possible. They also mentioned AS could be looking at cutting certain routes that don't make much money and arent doing so good.

They were intervewing passengers at SEA flying AS and most people here in Seattle are surpise AS is thinking of cutting since it has been doing so good and adding routes, new planes and actually doing well money wise.

What kind of changes do you think AS will be making? Will they be delaying any deliveries of planes? Which routes do you think will be cut from the route system. Do you agree with the meal service not being served even in First Class.

I sure hope AS doesnt make too many changes.
 
Sean-SAN-
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Joined: Tue Aug 13, 2002 4:02 pm

RE: Alaska Airlines Making Cuts?

Wed Jul 02, 2003 10:53 am

No comment on the meal cuts, but the labor cuts are obvious; even though Alaska is doing ok financially, they see labor at every other airline taking cuts and wants to save money too. A similar situation is happening at Delta. Problem is, they have no leverage since the pilots, etc have contracts and there isn't any impending layoffs coming since they're still getting new planes and hiring more people.

-Sean
 
shark
Posts: 52
Joined: Thu Jun 23, 2005 10:24 pm

RE: Alaska Airlines Making Cuts?

Wed Jul 02, 2003 11:32 am

Alaskas been losing money, just not as much as everyone else.
It really doesn,t matter that the work groups have contracts if the company wants to go for pay cuts they can do so at anytime. And there has been layoffs about 50 fleet service personal and some management personal. Alaska has also pushed back delivery on some aircraft until next year.
 
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EA CO AS
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RE: Alaska Airlines Making Cuts?

Wed Jul 02, 2003 3:13 pm

It really doesn,t matter that the work groups have contracts if the company wants to go for pay cuts they can do so at anytime.

Hi Shark,

Actually, it does matter.

As you're probably aware, under the Railway Labor Act, contracts at air carriers never expire, but become amendable at the end of the term. Until both the management and the union agree upon and ratify a new agreement, the provisions of the old one remain in effect.

This means that management has to abide by the old contract, pay rates and all, until a new one is agreed upon and voted in. No matter how badly they may want to, they cannot impose a new set of wages and other contractual items at will.

The only way management can get out from under such an agreement is to go before a bankruptcy judge and tell them that the contract is so burdensome that they cannot possibly make money under it, and ask for it to be thrown out.

The problem for management is that in order to do this, they actually have to be in bankruptcy first. And you can't just go into bankruptcy for the hell of it; you have to show that you are insolvent and in need of protection from creditors first. Alaska is years away from this, even at today's rate of losses.

Even then, there is no guarantee that a judge will say the contracts are so big that the company cannot survive under them. So it's all a big, embarrassing, expensive crap shoot.

A crap shoot, mind you, that carries enough of a stigma for a small carrier to lose a great deal of business, possibly eclipsing the amount of savings they're going after in the first place!

So Alaska's management is definitely LOOKING for voluntary wage givebacks (especially from the pilots, who are now the 2nd highest paid in the industry, as are the flight attendants), but they've got a snowball's chance in hell of getting the amount they're looking for.

Most of the savings they're looking for will come in the form of a single health plan for all employees, axing pension benefits for all new employees, etc.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
shark
Posts: 52
Joined: Thu Jun 23, 2005 10:24 pm

RE: Alaska Airlines Making Cuts?

Wed Jul 02, 2003 4:02 pm

EA CO AS
I said they can go for them at anytime, not that they would get them. And yes I know the Railway Labor Act as I have worked under it for the last 15 years. I guess I should also have said that I have been with AS for 12 years. They can ask for whatever they want. Who knows what will happen.
 
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EA CO AS
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RE: Alaska Airlines Making Cuts?

Wed Jul 02, 2003 10:53 pm

I said they can go for them at anytime, not that they would get them.

My mistake, then. Your previous statement seemed to imply that management was capable of IMPOSING pay cuts at any time. Thanks for clarifying.

Like you, I've been in this industry for 15 years, with the last 12 at AS. This is reminiscent of the switch from Bruce Kennedy to Ray Vecci; the "you are all entry-level and should never have expectations of owning a home," mindset is obviously back at Angle Lake.

Let's hope Bill Ayer doesn't cut too much, too quickly.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
dash8tech
Posts: 708
Joined: Mon Jul 05, 1999 8:40 pm

RE: Alaska Airlines Making Cuts?

Thu Jul 03, 2003 1:44 am

They were intervewing passengers at SEA flying AS and most people here in Seattle are surpise AS is thinking of cutting since it has been doing so good and adding routes, new planes and actually doing well money wise.

This is media at it's best here... AAG is not "doing well money-wise". We had the same issue down here in PDX when the Oregonian reported "Horizon flying high above the rest..."

The financial stance, or backbone if you will is better than some, NOT the revenue. We're bleeding just like everyone else is just that we haven't had to apply the tourniquet quite yet.
 
N743AS
Posts: 112
Joined: Wed Aug 30, 2000 4:02 am

RE: Alaska Airlines Making Cuts?

Thu Jul 03, 2003 1:53 am

10/10 pilots surveyed all agreed "NO PAY CUT!"

743AS
If the airplane is one piece, don't cheat on it...ride the bastard down! -Ernest K. Ghann

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