Originally Posted by
Apple Tree Yard
The most sensible comment of the month. As Controlled says, the Swires do what they wish, and the real state of affairs is hidden behind many layers of obfuscation. Although there is no doubt the current situation is financially very painful, don't be in any doubt as to how deep the reserves are to cover this...probably a 100X over. The fact is that many years ago Swire decided to keep CX's "profit" numbers to a respectable minimum (through said transfer pricing), to ensure minimal financial obligations to the staff. No matter the situation, the regular staff will never share in the good times, and be bludgeoned into sacrificing during the bad times. That is all a career here will ever be.
Exactly right ATY! SLS is a one way street. Employees are meant to give their money to the cause when things are bad, but not to share in the profits when times are good. CX Pilots haven’t had a meaningful profit share since 2010, since CX changed the formula.
Over the last 4 years, CX has squandered over 30 billion HKD on “fuel hedges” that were actually huge gambles. Had those bets paid off, do you think you would be sharing in the profits? No way, no how!!! However, those went all wrong and that portion of the cushion is gone. Is that the employees fault? Why do we have to pay for it?
Where are the shareholders? Swires, Mainland China, Qatar going to throw money at the crisis? I don’t think so. They know their investments are in jeopardy. Are they going to dilute their shares with any additional stock offering? Nope, they’ll just load the Company up with more debt, maybe debt that they will hold, with collateral of course.
Employees are the only ones being asked to give up 5.77% with nothing in return. Does it mean anything? No, three weeks pay from every employee in the Company doesn’t keep the lights on for even one week more. Ask yourself... If the Company goes under, do you want those three weeks in your pocket or theirs? It’s pretty simple math.
I feel sorry for all of you who got pressured into giving 3 weeks. Sadly, that’s how CX works. To those who want the time off anyways, good for you! I hope it turns into paid leave for you...