Southwest board tells unions CEO not going anywhere

Southwest Airlines’ board made no bones about its response to the labor groups that called for the ouster of two top executives: They’re not going anywhere. After the carrier’s four largest unions earlier this week called for CEO Gary Kelly and COO Mike Van de Ven to step down, directors fired back in a letter Friday saying they have “no intention” of removing either executive from his position. The work groups said Kelly and Van de Ven should go because of flight disruptions caused by aging computer systems and a too-narrow focus on cutting costs and stock buybacks rather than upgrading the reservation system. The board said Southwest has “never been stronger” in its 45-year history, citing increases in salaries, wages and benefits, service expansion and other accomplishments. “This all took place against the backdrop of years of economic turmoil, including one of the greatest recessions in our country’s history,” the board said in the letter. During the same period, several other airlines went bankrupt or closed down, while Southwest remained profitable and laid off no employees, the board said. The directors said in the letter that the unions’ vote of no confidence in management is “without merit” and “reckless” and fails to consider the potential consequences, such as a “grinding halt” in labor negotiations.<br/>
Bloomberg
http://www.bloomberg.com/news/articles/2016-08-06/southwest-airlines-board-tells-unions-ceo-isn-t-going-anywhere
8/7/16