What policy changes, benefit reduction or layoff news may happen that you can share,
everyone is now aware of RTO and current announced layoffs The previous bombshells were retiree medical and pension changes. This only applies to employees below C-suite.
Nothing has or is going to change with the C-suite and Board level, that club is untouchable.
Facts or speculation?
ACE has favoritism with VO bs. RTO. Execs believing the “special skill sets”. Unbelievable & sad that the ones who don’t really produce but are liked by the right people stay
And continue to produce little value but put up a good front. Not a good business model.
In the SE CWA D3 core with the exception of ET’s, outside techs have immunity from layoff until next year. That doesn’t stop the company from making offers for reductions so anyone in craft has a very good possibility over the next year or two getting SIPP or VTP for Leg T. They may also sweeten the offer like they did in 2020 with an additional $50k bonus.
With inflation, longer life spans and for those that can it might be beneficial to wait for an offer, those who are ready to go should show interest for SIPP or VTP. You have to select the option prior to start of a new quarter then it will remain viable unless you remove it. Just be ready to leave if you get the call because there are no do overs once you decide to go that route.
Preparing for selloff - nothing else makes sense.
If the bulk of the layoffs will be in the 3rd quarter, then I think I'll stick around a little longer just in case T decides to offer a VTP to the most senior technicians. I would hate to retire only to find out that the VTP came shortly after leaving! One quarter at a time!
A lot of moving parts and changes are going on in the company right now. The bills have come due from all the past decisions and leadership is running out of runway. Result is mitigation with increasing changes to policies, headcount, benefits, dividend, assets, etc…which is impactful to all parts of the company and financials.
They realize they have to start somewhere and it can't be done overnight. I think we will see the bulk of the layoffs in Q3 this year. They will need time to re-evaluate before they implement "wave2".
The urgent need to hit the 16bn FCF mark in 2023 is one reason the whole extended RTO/HUB timelines don’t make sense.
If this change was initiated to free up the cash flow and to hit the mark by 2023, as Stankey promised, then why are we acting like timelines can be push out to 2024-2025?
No doubt bonus will be paused or cancelled. We haven't even seen a plan for 2023 yet and we're halfway through the year.
They’re not done in CNIO by a long shot.
Watch for bonus to be “paused” in 2024 and severance to dwindle to two weeks pay. Furlough time w/o pay will be offered to non management in groups where work is slack. I’ve heard the non management furlough time has been pitched but no traction yet.
The terminology has changed from “quarters”” to “season”. We are entering a new “season”.
16 billion FCF needed for 2023 and first quarter yielded 1. 15 billion to make up in 3 quarters is going to be a stretch given the current market conditions. I see quarterly cuts into 2024 since this seems to be the only way they know how to increase FCF with the current management. They just don't seem to have any business sense, or they just don't seem to care about the direction of the company.
This being said, I think they will start playing games with the pension benefits again along with absurd changes to the medical plans for 2024.
ATS - ACE is going to be hit with surpluses again this month, off payroll next in July.