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The Beginning of the End for Southwest?

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  • The Beginning of the End for Southwest?

    Southwest Seeks Mediation
    In Talks With Attendants

    By MELANIE TROTTMAN
    Staff Reporter of THE WALL STREET JOURNAL


    DALLAS -- Negotiations between Southwest Airlines and its flight attendants union are growing more bitter after 16 months of talks, with the airline asking for assistance from national mediators and the union launching a national ad campaign to publicize its views.

    Such disagreement is unusual at an airline where public spats are rare, and underscores the growing frustration with negotiations.

    Southwest last week requested assistance from national mediators in hammering out a deal, the first time it has asked for help with the flight-attendants union. Meanwhile, flight attendants began running ads over the weekend that read, "Working for free ... Isn't that just 'plane' nuts?" (Even this statement is crazy, are they really working for free??!!)

    The ads, which will run in newspapers in 13 major Southwest markets, say that Southwest flight attendants are among the most productive in the airline industry. (People are lazy in nature, and who created this high productivity in Southwest? It's the management!! Without guideline and supervision, will these normal flight attendants able to claim that they are the most productive in the industry, or will they just sit around and just to avoid work just like any other flight attendants in other airlines??!!) In the ads, the union says its members are required to clean planes and do other tasks without pay.

    Since February, groups of Southwest flight attendants have held public demonstrations at airports, calling attention to tasks they say they must perform without pay and seeking higher overall compensation. The median pay for Southwest flight attendants is about $24,600 a year, the union said. Union officials say the company's pay-raise offers are inadequate. (Who decide whether it is adequate or not?? Union leaders? Shouldn't it be the market force that decide the market value of the work these attendants do?? Or the USA is now becoming USSR?)

    The union's six-year contract became amendable in June 2002.

    Southwest's request for mediation Wednesday followed the union's refusal to stop talking to the media. (Bad mouthing, blackmailing, other than these what do unions know to do??) Thursday, Southwest Chief Executive Jim Parker released the company's pay proposal to the union's full membership in a memo to give them "full access to that information." The amount hasn't been made public.

    The union leadership said that in response it will send its membership the union's proposal to the company.

    Write to Melanie Trottman at [email protected]

    -----------------

    My view is that if the attendants don't like their jobs and salary, they should quit and look for jobs elsewhere, either in the airline industry or even outside of it. Let see what they will be paid and how long they are going to survive before being fired! Stop using the union to bug the airline for a significant rise. I am certain that these attendants will regret their action eventually. What they are doing today is just inviting wolf packs to enter the gate.

    In today's economy, who don't do something "extra" in order to keep their jobs? Who don't work overtime without legal compensation?

    The point of the union is rather straight forward - either pay each of the attendants as much money as the company can squeeze just for sitting in the jump seats in the aircrafts and don't ask them to anything else, or we will bad mouth you in newspapers.

    The more union news I read, the more I feel the importance of higher education. Very simply, an ECON 101 course (if taught by the right professor) can just destroy whatever claim and statement these unions make and reflect their ignorance!!!! By finishing the econ degree, one can even possibly just write a book recording the economic jokes created by the unions.

    However, how many flight attendants in the world have a BA degree in economics? A few maybe, but clearly none of them in Southwest.

    Let the free market mechanism works, and minimize the damage caused by the unions!

  • #2
    although it won't kill them, southwest will definitely be hurt by a flight attendant strike. southwest has a loyalty base, but it is considerably smaller than most major airlines. a lot of people might really get pissed of at southwest for cancelling their flight due to a strike. not to mention, it would be a major blow to their reputation, which is a major reason why people fly them (outside of cheap fares).
    Work Right, Fly Hard.

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    • #3
      Southwest are very strong. I can't see this situation hurting them too badly at all.
      AIRIGAMI.NET
      http://www.airigami.net - The next generation of paper airliner modeling.

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      • #4
        There's enough people on the streets who'd love the jobs that would fall open by all of the troublemakers being kicked out.

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        • #5
          i'm one of those people
          My New Photo Name on JP.net is DutchAviation!!!!

          why should we fight about wich aircraft manufactor is better..............


          thats so childish....



          because hey we all know boeing is better

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          • #6
            If the F/As were to walk out on strike, it could be a black eye for Herb's successors. Colleen Barrett and/or Jim Parker could be forced out if the F/As walk. Southwest has had a history of good labor relations due to Herb Kelleher's ability to handle the unions. Southwest's corporate culture of being the underdog in the industry is out of date, and perhaps Southwest will need to adjust their culture to better reflect their current state.

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            • #7
              Originally posted by jwenting
              There's enough people on the streets who'd love the jobs that would fall open by all of the troublemakers being kicked out.
              I think there must be people in the management who would love to fire the union activist, but clearly if they do that they will receive lawsuits (sponsored by the unions of course) within a day of two.

              These unions are just too damn powerful.

              Southwest's corporate culture of being the underdog in the industry is out of date, and perhaps Southwest will need to adjust their culture to better reflect their current state.
              Yes, most people know that the capitalization of Southwest is greater than all the major airlines' combined together! Nobody in the industry and no pax consider them the underdog for a long time already I guess.

              What do you mean by adjusting their culture then? By raising the salary of the FA to unsustainable standard? Sure, they can do that since at least at this moment this option is financially feasible. What you risk, however, is that you will become the next UA within the next 3 years considering what the pilots union, the ramp workers union, and some other unions will ask for when their contracts expire??

              They don't care about the company. They will just ask for whatever pay increase in the FA salary and demand the same percentage pay raise!!
              Being greedy and company-wide "fairness" are what these unions ask for, although there aren't fair treatment in terms of their dealing with the management, and to the company that they rely on surviving for so long.

              If Southwest let the FA have their way this time, this company definitely won't sleep well in the future.

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              • #8
                None of this will hurt Southwest at all...they have people beating down their door looking to work for them....this is from the September edition of Airline Review magazine:

                Southwest beat expectaions for the second quarter by posting a profit of 246 million dollars. Southwest will increase its annual growth rate next year to as much as 7 percent, and then up to 10 percent in 2005 and in 2006.

                Southwest excercised options to purchase 15 737's for delivery next year. The order for 737-700 airplanes is worth about 750 million dollars. Southwest has a all Boeing 737 fleet of 380 aircraft.

                Southwest excercised nine 2004 options and six 2005 options, which were accelerated for delivery next year. The airline also pushed up two deliveries to 2004 from 2005. With previously sheduled orders for 2004, Southwest expects to take delivery of 42 737's next year.

                Southwest has 134 orders and options to buy 279 more Boeing aircraft remaining through 2012. Southwest's aircraft delivery plan is the next three years is roughly equal to all the rest of the industries combined.

                So I do not think they are going anywhere...even if all the attendants quit tomorrow..

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                • #9
                  i doubt that southwest will be affected teh majority strenght it has, and i guess if the flight attendants go southwest still could get attendants even from sacked AA and UA
                  Some people in today's society are so thick!

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                  • #10
                    I do not really think a Flight Attendant strike is going to kill Southwest at all. They are a big company (380 planes, that's a lot!) and as long as they offer the lowest fares in the market, people will keep on flying them.

                    However, I think this LCC bubble we are watching right now is very similar to the High-tec bubble. Hight-tec bubble exploded. So will LCC bubble? Who knows...

                    Cheers

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                    • #11
                      I am very happy to hear that southwest flight attendant are doing such things in order to get a well deserved raise!! These people have been working for peanuts for as long as I can remmember,as a matter of fact this was the only airline I didnt apply when I got laid off from a major because their pay sucks.It is rodicuolus that they get paid 14$ an hour or by certain miles they fly ,Im not sure.These people have to work long hours,have to clean airplanes,deal with the "LCC PAX TYPE" among other things.Why can JetBlue pay their F/As 20$ an hour and 30$ after 75 hours,they been in bussiness for 3 year,unlike southwest thats been in bussiness for a long time and that"friendly airline reputation" came to be thanks to the effort of F/As.If they are making a profit all the time ,they should be able to give these hard workers a raise,RIGHT NOW!!!!! I do hope they keep fighting for their rights and if that takes an strike well bring it on,,its time to let the CEO know that hes not the only one that wants to make some decent money.........By the way AirTran F/As turned down the proposed contract by the company for the same reasons,,It was a piece of shit!!!!!!!!

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