Wednesday, August 16, 2006

Go Dumpster Diving In Your Off Hours

Don't even think about doing it on company time though. Or in a company dumpster. Reuters (08.15.06), via AmericaBlog:
"Bankrupt Northwest Airlines Corp. advised workers to fish in the trash for things they like or take their dates for a walk in the woods in a move to help workers facing the ax to save money. The No. 5 U.S. carrier, which has slashed most employees' pay and is looking to cut jobs as it prepares to exit bankruptcy, put the tips in a booklet handed out to about 50 workers and posted for a time on its employee Web site." Northwest advised workers to see treasure in trash
"The four-page booklet, 'Preparing for a Financial Setback' contained suggestions such as shopping in thrift stores, taking 'a date for a walk along the beach or in the woods' and not being 'shy about pulling something you like out of the trash.'" "The booklet was part of a 150-page packet to ground workers, such as baggage handlers, whose jobs will likely be cut after their union agreed to allow the airline to outsource some of their work, [Northwest spokesman Roman] Blahoski said." "Prepared with the help of an outside company, the booklet encourages employees to manage their money better and prepare for financial emergencies." Sound advice to the unwashed ingrates. "'If you have saved some money, pat yourself on the back -- you deserve it,' the booklet reads. 'Take out only what you need and spend prudently.'" Cause after we get out of bankruptcy, not only are you gonna be out of a job, you're not gonna have any kind of pension left, either.


Blogger Rocky said...

I wonder how much the quarterly bonuses for the execs have increased.

11:36 AM  
Blogger knobboy said...

The CEO supposedly took a hit, along with the other big shots, but I don't think they're gonna be dumpster diving anytime soon. Unless of course they're into that kind of thing. Detroit News (05.03.06):

"Northwest Airlines CEO Doug Steenland took a 23.5 percent salary cut in 2005 as Detroit's largest carrier attempts to work its way out of bankruptcy.

Steenland, 54, earned $516,333 in 2005, down from $675,000 a year earlier. He turned down a bonus of $675,000 in both years."

Northwest CEO takes salary cuts

This article is based on this SEC filing. A closer inspection of this document shows that the hit Doug and the boys supposedly took wasn't all that harsh.

Discounting the other hoopla in there, the "Summary Compensation Table" shows that the boys all did better in 2005 than 2004.

The kicker is the so-called "LTIP Payouts" (as in the "Northwest Airlines Corporation E-Commerce Incentive Compensation Program"). Hell, given that kind of dough, who needs a steenkin' salary? As per footnote 5:

"Management has been instrumental in developing a number of e-commerce or internet-based businesses, including Orbitz, LLC and Hotwire, Inc. To date, as a result of the sale of a number of these investments, Northwest has generated aggregate cash proceeds of approximately $190 million and a return on the group of investments of approximately 442%."

As in the huge dough didn't come from flying planes. It came from building and selling websites.

Ahh, them internets!!

8:02 AM  

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