General Category > Economy/Business

Southwest employees feel the love with extra six weeks of pay from $667M profitshare

(1/1)

Elderberry:
Houston Chronicle by Sarah Sarder 2/10/2020

Southwest employees feel the love with extra six weeks of pay from $667M profitshare

After a challenging year that included thousands of canceled flights due to the Boeing 737 Max grounding, Southwest Airlines has shared some positive news.

The Dallas-based air carrier will share $667 million from its 2019 income with employees, a record high in the company's 46-year profitsharing history, it announced in a press release.

Employees received $544 million from profitsharing in 2019.

The latest award is equal to $1.8 million a day and comes out to more than six weeks pay for every eligible employee. In March, employees will receive some of that amount as a contribution to their profitsharing plan and some in cash, per agreements made with Southwest.

The total profitsharing award includes a "special $124 million pre-tax contribution" that CEO Gary C. Kelly said resulted from Southwest's settlement with Boeing related to the 737 Max grounding in March 2019.

More: https://www.houstonchronicle.com/news/article/Southwest-employees-feel-the-love-with-extra-six-15044501.php

Applewood:
I once read that Southwest believes in putting their employees first, ahead of the customers. That sounds wrong, but I guess the idea is that if the employees are happy, they will, in turn, make and keep the customers happy.  Whatever -- apparently the philosophy works.  I just hope that with all the problems Southwest has been having, it can afford to pay out this money to the employees.

catfish1957:

--- Quote from: Elderberry on February 10, 2020, 11:50:07 pm ---Houston Chronicle by Sarah Sarder 2/10/2020

Southwest employees feel the love with extra six weeks of pay from $667M profitshare



--- End quote ---

I had to design a number of employee reward and recogniton programs.

Nothing beats incentivetized cash as far as (1) getting employees to strive for betterment (2) employee workplace satisfaction.   

Jackets, chatchkes, and trinkets are nice awareness boosters of the goals, but the bonus check is what gets the smiles.

Hoodat:
Cool beans.  I am an A-Lister.  Will always fly SWA if I can.

Applewood:

--- Quote from: Hoodat on February 11, 2020, 03:19:04 am ---Cool beans.  I am an A-Lister.  Will always fly SWA if I can.

--- End quote ---

I've been a fan of Southwest ever since it and several other airlines entered the Pittsburgh market, breaking USAirways' virtual monopoly on air travel from this city.  Before Southwest and the others, western PA passengers were stuck with high fares and surly airline employees.  Now we have choices and they are good ones.

Navigation

[0] Message Index