RE: US Airways Union Negotiations Strike A Deal.
From United States, joined Nov 2001, 1461 posts, RR
Posted Mon Sep 27 2004 06:29:59 UTC
+1 and read 92 times:
If the unions do anything, such as a job action in reaction to a F.O.S., then Bronner has a couple options.
1) Liquidate the airline and get some cash back.
2) Liquidate the airline and let it go as a write off.
His total investment in U is only around 1 percent of his total fund's value. He doesn't care one way or the other.
Unfortunately the day of the diehard unions is numbered as this bankrupcty will likely get very ugly very fast. The only thing union solidarity will do now, is earn 30,000 people a welfare check. Hate to tell ya...the jobs aren't really that plentiful other there for people with similar experience. However...lets be honest. The tech bubble went boom...its time for the airline bubble to do the same. Yes, most are losing money...but there hasn't been a great reduction in capacity.
I am sorry, but the above author's profile says that he is 21-25 years of age? Where did he get these ideas? From listening to his noveau riche parents preach at home?
Union diehards? Solidarity brings welfare checks?
The pilots at USAirways are not going to agree to work for LCC or Regional carrier wages, and here is the reason why.
1. As has been stated, even with these cuts, their jobs are not secure.
2. While other jobs are not plentiful, the rest of the USAirways employees can find other employment at wage levels similar or higher than the new levels proposed by management.
3. By giving in, all the USAirways pilots will do is lock themselves into low wages for the rest of their careers, which may not be much longer, and again lower the bar for the rest of the industry. What happens next Spring? Should pilots really work for 50% less in real wages than they did 15-20 years ago. (Deregulation is 27 years old). This race to the bottom must stop. If US Airways stops flying, some of these guys will get on elsewhere, just like some did from Eastern, Pan Am, and Braniff. The rest will retire. Don't forget, the majority of US Airways pilots are pretty senior since the previous cuts took out most more junior employees. The pilots gave concessions less than two years ago. Management was not successful. It is better for the industry for USAirways to liquidate, than for their employees to work for AirTran or less wages.