We need to change the laws that allow corporations to restructure in bankruptcy and we need to change them now.
It is 100% wrong that businesses keep filing bankruptcy and resturcturing. Some businesses have done this SEVERAL times in the last 20 years.
They are allowed to do some really criminal things in the process. They often award their top executives HUGE INCREASES in salary while they are laying off workers at the same time and breaking unions. That is wrong.
United Airlines is a great example. They are in bankruptcy, AGAIN. They have been there for three years. They are going to end up paying lawyers and consultants over 335 million in fees. At the same time they have rennegged on several of ther pension plans and given them to the government. So now guess who will pick up the tab for these pensions? Yep, we will end up paying it. Thanks United!
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6 comments:
It's a good thing we deregulated the airlines, or else they wouldn't be able to make any money...oh wait.
Actually two airlines do okay in the U.S. profit-wise, but they've learned from the mistakes of giants like United and American.
Why is it that the people who scream the loudest about the infalliability of the free market are the first ones that come to its aid?
Probably because they are the ones that realize that we live in a delicate balance between prosperity and oblivion. There are MANY roads to oblivion...not so many to prosperity.
The Airline industry (with the exception of Southwest) suffers from the same malady as GM/Ford/Chrysler AND the U.S. Government....They became enormous and lost complete touch with the real world because of layer upon layer of middle managers with just enough authority to be dangerous and not enough accountability to be held responsible. Hence they just flounder in mediocrity.....
I may be wrong, bit I think United has only been in BK just the 1 time. Also, you state "It is 100% wrong that businesses keep filing bankruptcy and resturcturing. Some businesses have done this SEVERAL times in the last 20 years" Can you be more specific on what companies have filed SEVERAL times?
"Michael said" brings up a great point! Thanks "Michael said."
Michael is right and I am wrong. This is Uniteds first Bankruptcy filing.
Other major airlines have filed at least twice; including US Airways. Many experts are predicting the Untied will be filing AGAIN within a year of coming out of bankruptcy...
Mike Sylvester
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