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Darn Those Unions!
Oct. 15th, 2006 10:22 amMan, it's a good thing Safeway managed to force the unions to accept drastic cuts to pay and benefits for new hires a couple months ago. Otherwise, the whole company would be out of business now!
Oh, wait, not.
The Pleasanton, Calif.-based parent of the Vons and Pavilions grocery chains said Thursday that fiscal third-quarter profit jumped 42% as it continued to roll out stores based on its so-called lifestyle format, which features high-end meat and produce as well as design flourishes such as subdued lighting and earth-tone color schemes. (use BugMeNot)
Man, just think! If they had to pay decent wages to all their new people, their profit might have only gone up say, 30%! THE HORROR. But what makes this even more delightful? Wall Street's reaction. "Although the results matched Wall Street's expectations, Safeway's stock initially sank more than 7% when the company didn't raise its full-year profit outlook and investors worried about thinner profit margins. The stock recovered to close down 42 cents, or 1.4%, at $29.11." They're making 42% profit because they're ripping off their employees, and the stock market says that's not enough. THAT'S the source of a lot of the problems with corporate America, because everything has to be aimed at making the next quarter more profitable to keep the sharks at bay, which means little things like "long term planning" get thrown out the window.
Oh, wait, not.
The Pleasanton, Calif.-based parent of the Vons and Pavilions grocery chains said Thursday that fiscal third-quarter profit jumped 42% as it continued to roll out stores based on its so-called lifestyle format, which features high-end meat and produce as well as design flourishes such as subdued lighting and earth-tone color schemes. (use BugMeNot)
Man, just think! If they had to pay decent wages to all their new people, their profit might have only gone up say, 30%! THE HORROR. But what makes this even more delightful? Wall Street's reaction. "Although the results matched Wall Street's expectations, Safeway's stock initially sank more than 7% when the company didn't raise its full-year profit outlook and investors worried about thinner profit margins. The stock recovered to close down 42 cents, or 1.4%, at $29.11." They're making 42% profit because they're ripping off their employees, and the stock market says that's not enough. THAT'S the source of a lot of the problems with corporate America, because everything has to be aimed at making the next quarter more profitable to keep the sharks at bay, which means little things like "long term planning" get thrown out the window.
