Current Events > "... Labor is being paid first again. Shareholders get leftovers."

(+) Yeah! (+)

- Kevin Crissy, an analyst for Citi, in response to American Airlines announcing raises for flight staff

http://www.latimes.com/business/la-fi-american-airlines-raises-20170427-story.html

boo fucking hoo
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Isn't that the fucking idea?
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It's not every day you see it laid so bare.
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The23rdMagus posted...

Isn't that the fucking idea?

Not to corrupt corporate America
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Antifar posted...

It's not every day you see it laid so bare.

The honesty of communications that were never intended to be public
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The23rdMagus posted...

Isn't that the fucking idea?

uhhh no it's not. The shareholders put their money on the line.
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Gojak_v3 posted...

The23rdMagus posted...

Isn't that the fucking idea?

uhhh no it's not. The shareholders put their money on the line.

... to pay for the labor needed to make money back on their investments.
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Gojak_v3 posted...

The23rdMagus posted...

Isn't that the fucking idea?

uhhh no it's not. The shareholders put their money on the line.

The labourers their time. The argument can be made that time is worth more than money.
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generally shareholders are paid first, foremost, and only

i actually do understand this statement in the present corporate climate

that said the growing skills/labor shortage is altering the relationship, and to maintain a functioning workforce salaries have to be raised. the alternative is insufficient labor and bigger losses than the increased cost of paying for a staff that stays on.

but that is the sort of thing you never, ever, ever put in a reproduceable, readable format

that dude is going to be hung by his small intestine and he will deserve it
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ChromaticAngel posted...

Gojak_v3 posted...

The23rdMagus posted...

Isn't that the fucking idea?

uhhh no it's not. The shareholders put their money on the line.

... to pay for the labor needed to make money back on their investments.

The point is you pay out to the shareholders first. They are the ones taking the risk. That's literally how it's been done for a century in this country.
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Gojak_v3 posted...

The23rdMagus posted...

Isn't that the fucking idea?

uhhh no it's not. The shareholders put their money on the line.

The pilots and airplane staff put their time and even lives on the line though.
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Gojak_v3 posted...

The point is you pay out to the shareholders first. They are the ones taking the risk. That's literally how it's been done for a century in this country.

workers are also taking the risk of not ever being paid more than their initial contract states, which is a different sort of risk as they're investing time that is more and more valuable as the years pass

the issue is that asset is far less valuable to the company due to the relative scarcity of capital vs scarcity of labor

when things tilt towards scarcity of labor and capital is plentiful, the opposite happens

and when that occurs you quietly figure out how to solve your labor problems so you can get back to servicing capital

you definitely dont opine about it like this fuckwit did
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Oh man, somehow this quote is worse
http://www.vox.com/new-money/2017/4/29/15471634/american-airlines-raise

JP Morgan’s Jamie Baker was even more scathing than Crissey.

"We are troubled by AAL's wealth transfer of nearly $1 billion to its labor groups,” he wrote, suggesting that the move was not just contestable as a matter of business strategy, but somehow obviously illegitimate.

They are not merely against the redistribution of wealth, but just its distribution in the first place
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