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Layoffs at REX- Cadets to go first?!

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Layoffs at REX- Cadets to go first?!

Old 16th Jan 2009, 08:27
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Layoffs at REX- Cadets to go first?!

Have just heard from a reliable source that the Rex Chairman himself (LKH) has just announced that staff will be retrenched, especially amongst flight crew?!

This due to the financial crisis and corresponding reduced schedules.

Hopefully this isn't the case, as the cadets especially, who have just outlayed large sums of money and effort may now find themselves out of work?!

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Old 16th Jan 2009, 09:25
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It's always a "reliable source" isn't it

When this whole 'economic crisis' began, there were all sorts of experts/boffins predicting all sorts of financial atrocities.

However, despite their wide and varied predictions, they do seem to agree on a few points.

1. The Oz economy and global economy is expected to hit the bottom of the tub sometime in the next 6 months.

2. The recovery is expected to be quite rapid, with most agreeing that a significant improvement will begin sometime during the 2nd half of this year.

Despite the well illustrated 'questionable' intelligence of some airline management, I fully expect that they are reading the same information as I am.
As a result, I think that many airlines throughout the country are being quite reluctant to layoff pilots, as all indications are showing that the next shortage will begin sometime during this year.
The most recent shortage really deomstarted to airlines how true the saying is "It takes one month for a pilot to resign, but 4 months to replace him".

I think that your "reliable source" might be jumping the gun a tad there.


Eternity.
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Old 16th Jan 2009, 09:43
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Why then are they still conducting interviews? I know that the left hand doesn't always talk to the right hand in management, but i doubt they would get it THIS wrong.
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Old 16th Jan 2009, 10:16
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For your first post A.a.f., it's certainly a beaut'!

I have been predicting this situation for some time. When you consider that the pilot numbers at REX are now some 10% in excess of what they were 2 years ago (prior the massive attrition, and prior to the reduced schedule), what you are saying is not as far fetched as it may sound. The problem is, the crisis regarding the severe shortage of Captains has in no way been adressed. Sound familiar? I recently flew with an F/O who showed me 8 days of straight reserve on his roster!!! What we have now is a bottom heavy seniority list, the responsibilty of which lies squarely at the feet of REX management.

I must however agree with eternity. Probably jumping the gun a little, even when dealing with a pathalogically reactive mangement.

Although I hear what you are saying Chadzat, don't underestimate the capacity of these guys to get it wrong either.

Interesting times for all concerned!
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Old 16th Jan 2009, 10:27
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Jumping the gun a little?

Please, would someone then confirm or deny the following comments.....

However we have now come to the point where I can no longer defer a decision which I have only made once before some 5 years ago.
We will need to retrench staff, especially amongst the flight crew, as flying activity reduces.
I am mindful of the hardship and turmoil that retrenchment would bring but I have a higher responsibility to ensure the financial health of the entire group.
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Old 16th Jan 2009, 10:55
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Eternity

I think it is optimistic in the extreme to belive that things will improve within a year, in fact, I think it may take an eternity. We aint seen nuthin' yet
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Old 16th Jan 2009, 11:15
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I think they should sit for a bit and enjoy their time with 10% more crew than required. Another year and the FO's will be OK. Or, perhaps they have intended to over recruit with the intention of retrenching as a message to those fighting the EBA.

This is fine of course so long as the majors don't start recruiting again.

SN
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Old 16th Jan 2009, 12:29
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so I'm assuming that the cadets who get 'retrenched' will also get their money back?
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Old 16th Jan 2009, 19:39
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A.a.f.

The quotes you posted, are they from LKH? If they are, then what we have been thinking may be coming to pass. My remark about "Jumping the gun" was not meant to offend. I guess untill it's made public, it's just another rumour, but even I didn't think they would do it so soon!

As for the Cadets getting their money back, I suppose it all depends on the "contract". I'd be surprised however if they weren't at least billed for the training they have recieved to date.

A hard lesson, and another nail in the coffin of the profession.
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Old 16th Jan 2009, 20:03
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aaf....

it is all very well to wrap quote tags around a bunch of words. It is another thing entirely to say where the quotes came from!

Can you please tell us where these immortal(immoral?) words are written? , or if you are quoting someone on here.... who, and what post!
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Old 16th Jan 2009, 22:13
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Gee I hope this is just only a rumor, it will be a sad day if it does indeed go ahead (layoffs). I think the question here (rather than what's being asked) is more do the statements made match a question? As in is REX in that level of poo to do such a thing at the moment given the current training of cadets? To some yes, to others maybe not. Time will tell & if it does come to light these comments then the industry is becoming very rocky indeed. Do we need to 'fall down' before we can stand tall again?



Wmk2
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Old 16th Jan 2009, 22:35
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Coments from LKH in company Friday Files. Also makes mention of a freight downturn so lay offs could be Pel Air as well. Qantas cadets have also been knocking at the door looking for jobs. Maybe a bit of scare tactics as there is also reference to the EBA. In a seperate article in the paper there is a write up on cancelled services due to no crew. Time will tell.
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Old 17th Jan 2009, 02:49
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Surely they wouldn't let the Pel Air guys go, especially the ones who have just signed up for the Saab?
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Old 17th Jan 2009, 02:51
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Should've checked the Friday files first.

Ominous that LKH says "We will need to retrench staff, especially amongst flight crew...", not we may have to retrench (my bolding). Seems fairly clear to me! I agree however with aerocom about the industrial tactic. seems as though this sword may have more than one edge.

For those who may be given the chop, your seniority will be preserved. Last on first off, so try to take some comfort in that.

As for the Cadets, your relative seniority will determine just where you stand. For those in training and have yet to recieve a seniority number, it may be prudent to start looking at other options. It's anyone's guess what the delay will be.

As far as Pel-Air is concerned, my understanding is different company within the group, different EBA, different seniority list (if that applies). If seniority does apply, it won't matter what equipment you are on. Last on, First off. I've seen it in action before, and mangement will not hesitate to liquidate your services if you are deemed surplus to requirements!
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Old 17th Jan 2009, 03:24
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So, Krusty,

do you reckon that the Quid Pro Quo will be that IF the pilot body capitulates on the EBA, and accepts the same sh!tty deal as last time, then layoffs MAY be avoided?

If they are using this as a bargaining tool, then this is a new low... even for them!

IF however, it is genuine, and times are really tough, then i feel sorry for any of those who are on the chopping block.

Gut feeling is that it is the former!
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Old 17th Jan 2009, 04:03
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Very interesting. For the last eighteen months or so LKH has been bleating on about a pilot shortage. To suddenly threaten layoffs - and specifically mention flight crew as a target - is most intriguing.

To then go on and talk about EBA committees in the last paragraph seals it in my eyes. What's the only employee group with a yet-to-be-finalised EBA? It's nothing more than a declaration of war on the pilots.

Until there is sufficient reserve coverage to deal with the daily disruptions that are a part of life in any airline, there are not enough crew. So they go from not enough pilots to suddenly having too many? Just wait until the schedule ramps back up to normal levels over the next month or so.


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Old 17th Jan 2009, 04:12
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I reckon it's probably a bit of both apache. Times are unusual. Pax numbers and revenues are down (although not unexpected for this time of year). Total company debt is a whopping $1mil! Hardly cause for concern there. The agenda has always been to keep a lid on T&C's, even in good times. It's a well known fact that REX have reacted poorly to the pilot shortage. We now have a surplus of pilots, but are still cancelling services due to a lack of crew! It ain't rocket science, but they have already sounded load and clear their opposition to any form of retention. Ergo, too many F/O's, not enough Captains.

So I think the little fella from Singapore may just be on the level when he says people will go. Their excuse of course is always due to circumstances outside their control. The fact that they have over-recruited the wrong pilots won't even rate a mention. If by chance the elimination of a few will quell the dissent amongst the rest, then all the better! sort of like what the French generals did in WW1!

Last edited by KRUSTY 34; 17th Jan 2009 at 04:32.
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Old 17th Jan 2009, 09:18
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A search of recent announcements to the ASX (several from Rex, but on other matters), gives no hint of this.

If true (retrenchments), might be in breach of disclosre rules...............
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Old 17th Jan 2009, 09:29
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So far it's only in the Company newsletter (read propaganda mag') chimbu.

Chr!st only knows what they're up to?
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Old 18th Jan 2009, 01:21
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hey 'krusty' despite all the goings on at REX I still hear around the traps that REX are getting pilot applications all the time with interviews?
I guess they have a high failure rate of those applicants as in don't get past the first interview.
The older ones that I chat too frm the KD days say they thank their lucky stars they got out (for whatever reason) when they did.
Rex just seems to project tyranny (is that correct spelling police?) towards their pilots, that must be wearing a lot down there.
I hope the REX pilots can stand their round for a while yet.

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