seymore butts
27th Sep 2001, 22:27
Last in first out (LIFO) appears to be at first sight a fair way of downsizing a company. However there are a few problems that come with this option...
First and foremost, the reason for downsizing is usually to cut costs so it is logical then that the highest paid would be the most effective to lose. That said experience is a valuable asset to any company and the real cost is currency.
Another item to consider is one that the seniority guys have been banging on about since this began is the cost of redundancy. This is a one off payment and relatively unimportant to the company. But quite significant to the receptor, LIFO candidates will probably receive nothing and will also receive virtually no notice, they will also have very few hours on type, this being the only type they are current on so short term contracts are out, even if given unpaid leave for 6 - 12 months.
Everyone is crying for the FEs but this has been coming for years, if I was doing a job that was slowing becoming extinct I think I may have looked at options some time back.
We all know that if we fly an outdated aircraft the day will come when we either get laid off or hopefully re-trained.
In my view the only fair way to do this is by LIFO on the fleets involved. I was interested to read the Guvs points though it seems Mr G you’re non too popular a chap, I don’t know why nor care but your views I whole heartedly agree with.
Only in this industry would we have to go through this kind of depressing fight, if we worked in any other industry this would not be considered. I.e. if it were the building trade and brickies were to be laid off but electricians had less seniority, then I doubt if brickies would be re-trained as electricians.
Re-training guys from outdated aircraft is costly both financially and in time, it also consumes the training department so line checks etc become an irritation especially if someone requires a little extra.
The guys with seniority have by default had a good spell in employment so therefore should have saved a little for the leaner times (now), whereas the LIFO candidates have quite probably had a rough deal before or are just setting out, invariably with young families and large mortgages, they have received few concessions and even fewer pension payments.
It does get harder to feel relatively sorry for the seniority rich guys when you think about it. After all if we don’t cut costs in the most effective manor we will all be unemployed when the airline for which we work goes under.
:p
First and foremost, the reason for downsizing is usually to cut costs so it is logical then that the highest paid would be the most effective to lose. That said experience is a valuable asset to any company and the real cost is currency.
Another item to consider is one that the seniority guys have been banging on about since this began is the cost of redundancy. This is a one off payment and relatively unimportant to the company. But quite significant to the receptor, LIFO candidates will probably receive nothing and will also receive virtually no notice, they will also have very few hours on type, this being the only type they are current on so short term contracts are out, even if given unpaid leave for 6 - 12 months.
Everyone is crying for the FEs but this has been coming for years, if I was doing a job that was slowing becoming extinct I think I may have looked at options some time back.
We all know that if we fly an outdated aircraft the day will come when we either get laid off or hopefully re-trained.
In my view the only fair way to do this is by LIFO on the fleets involved. I was interested to read the Guvs points though it seems Mr G you’re non too popular a chap, I don’t know why nor care but your views I whole heartedly agree with.
Only in this industry would we have to go through this kind of depressing fight, if we worked in any other industry this would not be considered. I.e. if it were the building trade and brickies were to be laid off but electricians had less seniority, then I doubt if brickies would be re-trained as electricians.
Re-training guys from outdated aircraft is costly both financially and in time, it also consumes the training department so line checks etc become an irritation especially if someone requires a little extra.
The guys with seniority have by default had a good spell in employment so therefore should have saved a little for the leaner times (now), whereas the LIFO candidates have quite probably had a rough deal before or are just setting out, invariably with young families and large mortgages, they have received few concessions and even fewer pension payments.
It does get harder to feel relatively sorry for the seniority rich guys when you think about it. After all if we don’t cut costs in the most effective manor we will all be unemployed when the airline for which we work goes under.
:p