Does anybody observe what goes on around here? The Nov.19th
announcement by Horizon management that up to 71 pilots will be furloughed
clearly was no surprise. Regardless all the shiny new Horizon Q400s and RJ700s
arriving, our ability to compete in the topsy-turvy
airline market since 9/11 has been seriously eroded.
But everybody just yawns or files their nails.
How about accepting another reality that stares us squarely
in the face: Our unions don’t care about our
jobs. Where were the Teamsters when Horizon management was
planning the pilot furlough due to the catastrophic downturn in our business?
AWOL. As non-owners,
where else would they be?
For example, I talked to Sec/Treasurer and counsel Gene
Sowell of IBT Local 747 over the phone last July about the ESOP/CSOP and how
supporters could sure use some help from unions like the Teamsters. He
listened for awhile and then interrupted. “Let me tell you two things,” he
said. “Number one, I could care less
about Horizon Air. There are eleven airlines in Local 747 and I serve
the majority. Number two, I could case
less about your customers.”
Incredulous, I told Gene he wouldn’t last a day out in the
“real” world. I told him somehow he does not understand this critical
correlation: The customer pays Horizon, Horizon pays me,
and I pay the union. We are all connected. If that chain is
significantly interrupted, we all suffer and eventually die
economically.
How does this union mentality prevail? Isn’t it because the
union has no incentive to see our companies do well? All six AAG unions are
funded solely from employees’ hourly wages. Their only incentive to grow is to
drive fixed hourly payroll costs into the
stratosphere.
Recently, I had conversations with two local union leaders
here about how dire things are. Their solution? which they both said on
separate occasions like it had been rehearsed: “The
customers will just have to pay more.” What a great business
plan!
Unfortunately, this mentality doesn’t remain at the top. It
trickles down into the rank-and-file. I have talked to many employees who
arrogantly say good riddance to the departure of these fine employees. They
seem unconcerned of the many associated costs that Horizon will bear as the
“furlough ripple” fans out across the company. Many employees have expressed
to me flatly that employee wars will be declared before any pay cuts are
considered, period. They also say they have no confidence in any
exchange-for-stock or other capital-side entitlement method as a way to bring about the inevitable--employees sharing in the financial
risks of keeping our airlines and jobs in business.
These employees match corporate’s approach, too. I see
nothing from the Board of Directors or management that shows that they are
willing to take on this monumental task of totally overhauling our highest
fixed cost--how we all are paid.
HACECA has advocated for over four years now that payroll
should be a combination of hourly wages and capital-side entitlements. Yes,
fixed hourly wages would be lower when compared to “industry standard,” which,
remember, is artificially inflated due to the union “negative-incentive” factor described above. (If you want
a perspective, talk to your United Airline friends who are staring into the
bankruptcy cellar.)
There is one employee group taking it on the chin this year.
That group? Management, our executives, and to a lesser extent, directors.
Their pay is hooked, around 30 percent (10 percent for directors), to the
company’s financial performance. Can you imagine how worse off we would be if
our management’s pay was fixed like employees, and the corporation was
required to pay those top rates regardless?
My reply to distrusting employees is always “what’s the alternative?” Alaska and Horizon are
both on long heart donor lists after decades of carrying excess baggage. We
are encumbered with unions who have no incentive to keep us alive. If we fail
they’ll just organize the up-and-coming Frontiers and Jet Blues of the world.
They know the cycle continues to infinity--Steve
Nieman, President of the Horizon/Alaska Customer/Employee Co-Ownership
Association, AAG shareholder, Horizon employee and QXTeamster