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Gotta love unions. Air Canada may perish

MMike

A fowl peckerwood.
Sep 5, 2001
18,207
105
just sittin' here drinkin' scotch
http://www.cbc.ca/stories/2004/05/20/business/ac040520

Well let's see

About 15 years ago, Air Canada was privatized. Then through horrible mismanagement, the airline is now bankrupt. Air Canada has 7 or 8 different unions. All but one have agreed to pay cuts to keep the airline alive.

As it's an election year, the "rogue" union guy is counting on the gov't bailing them out...(Air Canada employs a large number of voters!), thus not requiring pay cuts. So he's sticking to his guns. But everyone is saying that the gov't ain't gonna do squat. So it's quite possible the airline will go tits-up.

Alas it would seem the the workers are being penalized for the mistakes of the people steering the boat over the years. But can they afford to play hardball at this point?

I wonder what this will mean for my dad's pension (as he is an Air Canada retiree)
 

Silver

find me a tampon
Jul 20, 2002
10,840
1
Orange County, CA
Air Canada sucks.

The check in terminal at LAX? 5am...0 people in line, 3 people working. Middle of the day, flights going out to Calgary, Vancouver, and Toronto with 500 people in line, 3 people working.

My blood pressure dropped 20 points after I started flying Alaska.
 

MMike

A fowl peckerwood.
Sep 5, 2001
18,207
105
just sittin' here drinkin' scotch
Originally posted by Silver
Air Canada sucks.

The check in terminal at LAX? 5am...0 people in line, 3 people working. Middle of the day, flights going out to Calgary, Vancouver, and Toronto with 500 people in line, 3 people working.

My blood pressure dropped 20 points after I started flying Alaska.
Eww.... Alaska sucks ass....or their planes do anyway. I despise those 737NG's. I'm 5'9" and I feel cramped in them.

I don't much care for the "breakfast burrito" they serve either.
 

Silver

find me a tampon
Jul 20, 2002
10,840
1
Orange County, CA
Originally posted by MMike
Eww.... Alaska sucks ass....or their planes do anyway. I despise those 737NG's. I'm 5'9" and I feel cramped in them.

I don't much care for the "breakfast burrito" they serve either.
I sleep on the plane and don't eat the food...so I'm more anal about the check in experience than most people...
 

Silver

find me a tampon
Jul 20, 2002
10,840
1
Orange County, CA
Originally posted by MMike
Which makes me wonder why I'm wasting my time wiring up coloured "mood lighting" and powered window shades on these damned things......
If you find a way to shield the things so that I can use my iPod through takeoff and landing, I will worship at your feet...
 

Tenchiro

Attention K Mart Shoppers
Jul 19, 2002
5,407
0
New England
Originally posted by MMike
Then through horrible mismanagement, the airline is now bankrupt.
Then through horrible mismanagement, the airline is now bankrupt...

Lets think about that statement for a few minutes, shall we. Personally I didn't realize that Unions had anything to do with managing companies.

Who is to blame for the airlines failure again?
 

MMike

A fowl peckerwood.
Sep 5, 2001
18,207
105
just sittin' here drinkin' scotch
Originally posted by Tenchiro
Then through horrible mismanagement, the airline is now bankrupt...

Lets think about that statement for a few minutes, shall we. Personally I didn't realize that Unions had anything to do with managing companies.

Who is to blame for the airlines failure again?
Didn't i sort of address that?

Alas it would seem the the workers are being penalized for the mistakes of the people steering the boat over the years. But can they afford to play hardball at this point?
 

MTB_Rob_NC

What do I have to do to get you in this car TODAY?
Nov 15, 2002
3,428
0
Charlotte, NC
Originally posted by Tenchiro
Then through horrible mismanagement, the airline is now bankrupt...

Lets think about that statement for a few minutes, shall we. Personally I didn't realize that Unions had anything to do with managing companies.

Who is to blame for the airlines failure again?

Ummm ya exactly, your statement is a PERFECT example of the short sightedness of "Labor."

Management is much more than just the white shirts and ties in the office doing things you do not understand. It is their responsibility that the organization as a whole is a healthy ongoing profitable entity. Labor costs in the airline (or almost any industry) is one of the key components of total cost. Who is the one holding back managements' ability to control those costs in this case?
 

valve bouncer

Master Dildoist
Feb 11, 2002
7,843
114
Japan
Originally posted by Andyman_1970
I've said it once and I'll say it again, unions are killing the aircraft industry as a whole.
Really? And what do you back this up with? I'm actually interested.
 

Silver

find me a tampon
Jul 20, 2002
10,840
1
Orange County, CA
Originally posted by Mtb_Rob_FL
Ummm ya exactly, your statement is a PERFECT example of the short sightedness of "Labor."

Management is much more than just the white shirts and ties in the office doing things you do not understand. It is their responsibility that the organization as a whole is a healthy ongoing profitable entity. Labor costs in the airline (or almost any industry) is one of the key components of total cost. Who is the one holding back managements' ability to control those costs in this case?
Except that every airline deals with the same costs.

An aircraft mechanic is one place I don't want a company to skimp...it's not like throwing potatoes in the fryer. The guy at McDonalds screws up, and I have pickles on my quarter pounder, the airline mechanic screws up, and I'm fish food...
 

Ridemonkey

This is not an active account
Sep 18, 2002
4,108
1
Toronto, Canada
Originally posted by Silver
Except that every airline deals with the same costs.

An aircraft mechanic is one place I don't want a company to skimp...it's not like throwing potatoes in the fryer. The guy at McDonalds screws up, and I have pickles on my quarter pounder, the airline mechanic screws up, and I'm fish food...
You don't like pickles on your Quarter Pounder? :confused:
 

Silver

find me a tampon
Jul 20, 2002
10,840
1
Orange County, CA
Originally posted by Ridemonkey
You don't like pickles on your Quarter Pounder? :confused:
I don't eat at McDonald's, it was just an example.

But no, I don't like pickles at all, unless they are wrapped in a piece of ham and held together with a toothpick.
 

Andyman_1970

Turbo Monkey
Apr 4, 2003
3,105
5
The Natural State
Originally posted by valve bouncer
Really? And what do you back this up with? I'm actually interested.
My own experience in the aircraft industry for over 7 years.

The cost vs. productivity of a union employee is higher(cost) than a non-union (lower cost). Our facility got the next generation airplane that should be certified later this year primarily because we are non-union and our cost of doing business is less than our parent Wichita facility (union).

More and more aircraft companies (manufactureres) are outsourcing more and more work and not just to get business with those foreign countries. It's much cheaper to have Japan make a wing than say the union employees in Seattle or Wichita.

It's very apparent in the state of the US aircraft manufacturing industry if they don't figure out how to control and reduce costs, many jobs are going to go overseas. Case in point, the wire harness on one of our smaller and newer business jets we outsourced to Mexico even after the wire shop in Wichita did everything under the sun to reduce costs. It takes a certain number of people to build up a wire harness, it's (at least from what I have seen) labor intensive and hard to automate. The one cost the Wichita folks couldn't (or wouldn't) reduce was labor, so the work goes to Mexico.
 

sshappy

Chimp
Apr 20, 2004
97
0
Middle of Nowhere
Originally posted by Andyman_1970
It's very apparent in the state of the US aircraft manufacturing industry if they don't figure out how to control and reduce costs, many jobs are going to go overseas.

The one cost the Wichita folks couldn't (or wouldn't) reduce was labor, so the work goes to Mexico.
This is only part of the picture, there are more factors involved than simply the cost of labor. I don't suppose that you have access to any figures, or perhaps that you could post them even if you had them, but if a company is looking to reduce expense it is doing so in order to raise profits (at a basic level).

At what point does profit become excessive and at what point does it therefore become unjust to expect your workers to accept lower wages in order to boost profits?

I do not know the specific figures for the aerospace industries but I am aware of examples within the pharmaceutical industry where Executives have ridiculous contracts that could cover the wage of several hundred non-management employees. This includes instances where the chief execs have been dumped due to (extremely) poor performance and receive golden parachutes of over $10 million.

Unions and labor are an easy target. Perhaps Air Canada's execs should also return some of their hard-earned cash in respect of the poor management.
 

Andyman_1970

Turbo Monkey
Apr 4, 2003
3,105
5
The Natural State
Originally posted by sshappy
This is only part of the picture, there are more factors involved than simply the cost of labor. I don't suppose that you have access to any figures, or perhaps that you could post them even if you had them, but if a company is looking to reduce expense it is doing so in order to raise profits (at a basic level).
I have access and see our companies F & O numbers every quarter. The largest cost we have is labor and things associated with it (SS, medical insurance, etc). I would post them, but I like my job, so..........

The second largest cost we incure is inventory, which is easier to get rid of (eventually) and less painful than a lay off.

Originally posted by sshappy
At what point does profit become excessive and at what point does it therefore become unjust to expect your workers to accept lower wages in order to boost profits?
Our company, and I dare say a large portion of other aircraft manufacturers since 9/11 have not made a profit or just broke even. Last year was the first year in a few years that our company broke even. Part of that problem was pre-9/11 mismanagement and gross ineffiecentices that incurred huge costs. Since 9/11, about 2500-3000 people have been laid off, inventories reduced, assests sold, and the workforce "leaned" out. We now have a somewhat healthy company financially, but margins are so slim that if there is one "hiccup" we either lose money or just break even.

In our industry (since jobs are few and far between), it would seem that you could freeze or lower wages until the company is healthy and then go back to how it was. This was the case in my department. They leaned out the engineering department severly, to the point work was not getting done. We were "asked" to work overtime with no pay, go from 66 days of sick time to 5, and raise your insurance. As much as I grumbled, I was cool with that, I had a job in a difficult market and I understood that. But we had several engineers leave, and to control that (the market is marginally better than it was 8-12 months ago), myself and several other "core" engineers got 2 raises in a months time. They knew that if they did not compensate us we would eventually leave. Supply and demand.

Did that answer your question?
 

MMike

A fowl peckerwood.
Sep 5, 2001
18,207
105
just sittin' here drinkin' scotch
Originally posted by Andyman_1970
Case in point, the wire harness on one of our smaller and newer business jets we outsourced to Mexico even after the wire shop in Wichita did everything under the sun to reduce costs. It takes a certain number of people to build up a wire harness, it's (at least from what I have seen) labor intensive and hard to automate.

I'm sure this was already looked into, but how big is this wire bundle assy? Carlyle or Labinal couldn't build it for you? We sub out 99% of our WBA's to Carlyle
 

Andyman_1970

Turbo Monkey
Apr 4, 2003
3,105
5
The Natural State
Originally posted by MMike
I'm sure this was already looked into, but how big is this wire bundle assy? Carlyle or Labinal couldn't build it for you? We sub out 99% of our WBA's to Carlyle
We used to do them all ourselves (we don't sub out any of thw work we do here) and now someplace in Mexico (can't recall the co. name) is going to do them. This is not for all our airplanes just this one model.
 

MMike

A fowl peckerwood.
Sep 5, 2001
18,207
105
just sittin' here drinkin' scotch
Originally posted by Andyman_1970
We used to do them all ourselves (we don't sub out any of thw work we do here) and now someplace in Mexico (can't recall the co. name) is going to do them. This is not for all our airplanes just this one model.
Heh...Gotta love it eh? 99% of plane crashes are due to electrical failures..... The "Made in Mexico" label should give everyone a warm fuzzy feeling!
 

Skookum

bikey's is cool
Jul 26, 2002
10,184
0
in a bear cave
Originally posted by MMike
Heh...Gotta love it eh? 99% of plane crashes are due to electrical failures..... The "Made in Mexico" label should give everyone a warm fuzzy feeling!
Regardless of hardwiring into putting the blame on either the Unions or the Execs, or the govt, or the lawyers, or the high cost's of dental and medical, and terrorists and so on and so forth, your slow subtle anti plane propaganda seems strange to me knowin you ride a mt. bike as i assume you do... in an extreme dangerous manner, defying gravity.
You don't happen to ride a mexican built bike by any chance?.....
 

MMike

A fowl peckerwood.
Sep 5, 2001
18,207
105
just sittin' here drinkin' scotch
Originally posted by Skookum
Regardless of hardwiring into putting the blame on either the Unions or the Execs, or the govt, or the lawyers, or the high cost's of dental and medical, and terrorists and so on and so forth, your slow subtle anti plane propaganda seems strange to me knowin you ride a mt. bike as i assume you do... in an extreme dangerous manner, defying gravity.
You don't happen to ride a mexican built bike by any chance?.....
Uhhhh....what?
 

ummbikes

Don't mess with the Santas
Apr 16, 2002
1,794
0
Napavine, Warshington
Originally posted by MMike
...when we don't do the same stuff? That's like making a chef work on a farm. They're sort of related, but not really the same thing.
Hey I was reaching, I haven't been in a good fight online for a few months.

I guess if I did have a point, I forgot what it was.
 

Skookum

bikey's is cool
Jul 26, 2002
10,184
0
in a bear cave
Originally posted by MMike
Uhhhh....what?
haha... ok let's try that again.

You've stated in posts before you have no faith in the safety of airlines today, i just thought it curious since you and many of us ride dangerously. We could die getting booted and landing wrong on a gap jump or crash on rare plane crash on a vacation to Kukamunga.

Really wasn't trying to go anywhere with it, being tired and bored is a deadly combination in the political forum especially....