American Airlines punished by Wall St. for raising wages
 

https://www.vox.com/new-money/2017/4...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.?

JP Morgan?s Jamie Baker was even more scathing than Crissey.

"We are troubled by AAL's wealth transfer of nearly $1 billion to its labor groups,? he wrote, suggesting that the move was not just contestable as a matter of business strategy, but somehow obviously illegitimate.

Baker, however, takes a darker view, saying that not only does the raise increase costs, it ?establishes a worrying precedent, in our view, both for American and the industry."

https://pbs.twimg.com/media/CKh5W5kUEAEJCuy.jpg

The workers are seen as wage slaves

This is the main reason wages are in the toilet and why the good working class jobs are gone and are never ever coming back.

I'm sure you guys pay any people you hire as much as possible too... after all, any one you hire is like a partner in your businesses and should get a fair share of it's profits... :error

on the other hand shareholder supremacy expects companies to drop wages as low as possible BUT the population to, somehow, have money to buy their products at the same time...

that logic is flawed, you do realize that if employees get more, someone else is getting less?

that someone else might be your retired mother who happens to own some stocks in her 401k, or perhaps your local university that invests it's endowment in stocks, etc

and he calls paul a hypocrite? :mad::mad:

Paul is hypocrite. Slobodan on other hand knows he is milking the system and is willing to admit it. The admission part I do respect.

generally speaking shareholder supremacy concentrates wealth to a small group of people...this good for them only short term...shareholders usually have medium or large cash already...

I openly admit to being a rat bastard...I do not blame immigrants or illegals or anybody but myself...there is no hypocrisy involved...I am doing exactly as wall street is doing, fucking over who ever I can, but my point with this post is to expose the flaws of capitalism and the mechanisms with which inequality is created and how money attracts more money and vice versa...

Serbian Captain O!!!
What would we do without you? :1orglaugh

The airline will keep flying and the stockholders will keep their stock or some of the current holders of the stock will sell and their will be new holders of the stock. No big deal.

yup and perhaps you may get better service as a result ?:2 cents: