Wednesday, June 4, 2008

United Airlines Cuts over 1400 jobs

Remember Glenn "I make $10 million a year for screwing up" Titlon? Today that CEO together with COO John "I make $5 million a year for screwing up" Tague called his employees with the bad news. Oooo, a personal call. Trying to make the whole cannibal experience seem more humane.

John: "Thanks, Glenn. Earlier this year, we laid out a five-point plan aimed at building a United fit to win in today’s reality."

I bet this doesn't involve cutting their salaries!

1. "New sources of revenue" like charging for that second bag. That makes me want to fly more, not!
2. "Reducing capacity". Do you here that sucking sound?
3. "Retire old aircraft". Sounds good on the surface, but it limits there one profitable division: International travel.
4. "Elimination of Ted product." Isn't that their economy division?
5. "Reducing our workforce." i.e. screw yall while we still take home the bank.

Full text here. (need NYT login)

Like the dilemma with GM, we can solve this another way and provide better service. After all, the airlines are not a place for executives to just pad their pockets. Let's cut some of the least profitable routes, but keep all the employees so the quality of service goes up. More employees per customer usually equates to quicker, friendlier service. Friendlier because the workforce is not overstretched as it has been.

I can hear Glenn and his BFF John saying, "but where, oh where will the money come from?"

Well, their are 21 top executives making millions with tens of millions in stock options, like:
Frederic F Brace, Executive VP/CFO $4.9 million a year
Paul R Lovejoy, Senior VP $2.4 million a year
Rosemary Moore, Senior VP $2.4 million a year

With Cannibal Planet math, we let this misguided execs still take home $250k and keep their options. The rest rolls in to the salaries for the workforce they so readily wanted to fire.

That's almost $100 million a year. Wow! That is almost exactly the amount they need to keep 2000 people on the workforce at a living wage!

Hold it, that means UAL could actually help turn this nation's economy around by hiring 400 people, providing better service, thereby improving the brand, and maybe, just maybe my bags will arrive with me this time.

Maybe the workforce will hire me as a consultant?

Hey yall, Crash into Me, for all those UAL employees

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