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[Jeffrey]

https://www.vox.com/new-money/2017/4/29/15471634/american-airlines-raise

American Airlines agreed this week to do something nice for its employees and arguably foresighted for its business by giving flight attendants and pilots a preemptive raise, in order to close a gap that had opened up between their compensation and the compensation paid by rival airlines Delta and United.

Wall Street freaked out, sending American shares plummeting. After all, this is capitalism and the capital owners are supposed to reap the rewards of business success.

“This is frustrating. Labor is being paid first again,” wrote Citi analyst Kevin Crissey in a widely circulated note. “Shareholders get leftovers.”

Indeed, major financial players were so outraged by American’s decision to pay higher wages that they punished airline stocks across the board. American itself took it hardest on the chin, of course, but the consensus among stock analysts was that higher pay at American could signal higher pay at other airlines too, with negative consequences for the overall industry.

whole article is worth a read. Really does show how the national economic structure is designed atm.

Surely having the government staffed by wall street will solve all this!

 

[Metroxed]

Well, that's capitalism for you.

 

[Funyarinpa]

This is so fucked up

 

[TyrantII]

Well, that's not Capitalism for you

 

[GoldenEye 007]

Good on American.

 

[TemplaerDude]

Yeah, okay, sure... but... without labour... there would be no shares to hold...?

 

[Pakkidis]

Says a lot about our economic system when people your employees more money is seen as a bad thing for your company. Profits before people.

 

[Baron von Loathsome]

Oh no, the people making your money are being rewarded for their work.

 

[Yoshimitsu126]

Hey that's a good slogan for the DNC!

"Shareholders gets leftovers!"

 

[Slayer-33]

Yeah, okay, sure... but... without labour... there would be no shares to hold...?

Assholes galore, don't pay the people making the company the money. Unbelievable logic

 

[You Are Viewtiful]

How much did it drop by? It doesn't even say in the article :s

 

[MisterHero]

If the employees save enough, maybe they too can be shareholders

 

[jack_package_200]

Hey that's a good slogan for the DNC!

"Shareholders gets leftovers!"

Somebody call Tom Perez!

 

[Gabriel_Logan]

Hey that's a good slogan for the DNC!

"Shareholders gets leftovers!"

That's actually pretty good.

 

[GitarooMan]

Hey guys if we just cut taxes in a big way on big business they'll just want to reinvest in the American worker and everyone benefits. They won't want to just keep it for themselves. Foolproof

 

[NEO0MJ]

I mean, they invested their money into the company. Of course they'd want to see a reward for the risk they took.

 

[Aselith]

Well, that's maybe Capitalism for you

 

[Moosichu]

It's worth pointing out right, this is entirely motivated by psychology. There is nothing to suggest AA's business will suffer because of this descision, it's just that investors want to believe they are important in order to help themselves sleep at night.

 

[Montresor]

“This is frustrating. Labor is being paid first again,” wrote Citi analyst Kevin Crissey in a widely circulated note. “Shareholders get leftovers.”

This Kevin Crissey sounds like a huge cunt.

 

[bonesmccoy]

It's worth pointing out right, this is entirely motivated by psychology. There is nothing to suggest AA's business will suffer because of this descision, it's just that investors want to believe they are important in order to help themselves sleep at night.

Seems more like plain old greed to me.

 

[Orkidea]

Paging Gordon Gekko

 

[VariantX]

Something real fucked up when there are rich assholes on the sidelines whining about people who are on the front lines everyday grinding it out, boots on the ground, and making the whole thing work in the first place getting a little reward for it. I dont give a shit how much money you invested in the company when you aint out there providing customer service and bringing people in to do business with the company in the first place. Not even referring to them as people, just 'labor', as if paying people for doing a job is like pulling teeth.

 

[boiled goose]

So symptomatic of our society.

Capital over labor.

Profits over people.

 

[XGRaViSmOrSX]

So symptomatic of our society.

Capital over labor.

Profits over people.

Time to sharpen the shotguns.

 

[LucidMomentum]

Our company cut some thousand or so jobs last year just so we could pay dividends out again like we did last year.

SMH. I get why it was done but it still felt like shit seeing people go.

 

[Sanke__]

It was time for my daily reminder that I work for the devil (Citi)

....fucking douchebag

 

[WMBT27]

Every politician that claims massive tax cuts for the wealthy/corporations will be reinvested into the labor force should be forced to say it while holding up a graphic of this stock reaction and that quote

 

[Amalthea]

"Who do those stinking labourers think they are? I for one as a Wallstreet top-shot can't wait until all workers have been replaced by robots and the golden age of capitalism will begin where we can just earn money but don't have to pay anyone! Then the free market will truly have regulated itself!"

 

[Doominated]

Well, that's capitalism for you.

Well, that's not Capitalism for you

Well, that's maybe Capitalism for you

NEOGAF.GIF

 

[Baron von Loathsome]

Time to sharpen the shotguns.

 

[Gallbaro]

Well, part of how the demand for stocks work is how much free cash flow that stock is likely to generate.

Pay more to labor, less for you, lower stock price.

The reaction is logical.

 

[jay]

Yeah, okay, sure... but... without labour... there would be no shares to hold...?

Labor will always need jobs for food and shelter. Why ever pay more than the bare minimum?

 

[capitalCORN]

Unfortunate that finance requires a virulent thought process to succeed.

 

[sangreal]

Well, that's capitalism for you.

So is being forced to raise your wages to keep up with the competition

Wall Street analysts are just short sighted, as always it

 

[Parkhater]

This is the reason why lowering taxes on corporations will not help the working class.

 

[aeolist]

daily reminder that capitalists are and always have been waging class war on labor and must be fought at every turn

 

[Vigilant Walrus]

I mean, they invested their money into the company. Of course they'd want to see a reward for the risk they took.

Being a shareholder doesn't mean you have to fuck over people or see the gains of others as your loss. It's a miserable existence to work in aviation. The shareholders can reap the rewards from their investments paying off. That has nothing to do with them shaking and hustling the people who do the actual work day to day.

This has nothing to do with rewarding them for their "risk". This is just unhinged greed and tone deafness in a culture where it is never enough.

 

[openrob]

The John Lewis model and what others could learn from it

 

[Korigama]

“This is frustrating. Labor is being paid first again,” wrote Citi analyst Kevin Crissey in a widely circulated note. “Shareholders get leftovers.”

Oh no, the people responsible for a business continuing to exist because they do all the actual work are getting paid first. How horrible it must be.

 

[aeolist]

This is the reason why lowering taxes on corporations will not help the working class.

lowering corporate taxes and giving a tax holiday for overseas holdings will lead to massive dividends and stock buybacks, the vast majority of it will end up in billionaires' pockets

 

[ZackieChan]

Seems more like plain old greed to me.

I mean, they invest so they can make money, not so employees can get paid more. Right or wrong, that is their motivation for putting money into the company.

 

[adamsappel]

And yet they don't have the same reaction to executives being given huge salaries or golden parachutes. Huh.

 

[jay]

lowering corporate taxes and giving a tax holiday for overseas holdings will lead to massive dividends and stock buybacks, the vast majority of it will end up in billionaires' pockets

Who will make more jobs. Problem solved.

 

[Kyuur]

Well, part of how the demand for stocks work is how much free cash flow that stock is likely to generate.

Pay more to labor, less for you, lower stock price.

The reaction is logical.

Unless paying more for labor is part of a strategy for a better, more efficient workforce that will attract more profits in the long run and improve the company's standings amongst other airlines. But I mean of course American Airlines just loves their employees so much they want to give them raises instead of paying out their shareholders.

This just shows the incapability for most to think about the future.

 

[GoldenEye 007]

I mean, they invest so they can make money, not so employees can get paid more. Right or wrong, that is their motivation for putting money into the company.

They chose to make that gamble. Hope American continues to make things better for their labor force.

Or they can invest enough to be able to influence company policy and raise their ownership percentage.

 

[M.D]

 

[Gattsu25]

 

[GoldenEye 007]

Who will make more jobs. Problem solved.

Except trickle down doesn't work in reality. We've tried it for long enough and ruined enough lives.

 

[BlueTsunami]

Trickle down? Nah, what about the shareholders

 

[Empty]

American Airlines agreed this week to do something nice for its employees and arguably foresighted for its business by giving flight attendants and pilots a preemptive raise, in order to close a gap that had opened up between their compensation and the compensation paid by rival airlines Delta and United.

lol at this being presented as "something nice" as if realising you need to pay your employees a market rate salary was an act of pure kindness