This is the year every one sees Vail at its finest! All the full time employee's have had enough! The UAW is working with the ski instructors at this time. They are planing to organize a union. It will undoubtedly happen! The Employees have not received a raise for about 3 years! The entire time big bonuses are being passed around in the corporate level! This year the most requested instructors received a dollar raise at best. To live in this valley is very expensive and they are trying to pay min wage. They will not be able to fill positions with out the valley work force. This year will be known as the strike year! VAIL99
Over the past several decades, unions have done little good for workers (evidence the drop in Teamsters membership over the past 10-20 years). My Dad worked for a power company for 38 years. During that time, I saw nothing but his benefits ERODE. Gee, I thought unions try to preserve/embellish such things.
Unions generally try to protect the jobs of 'skilled' workers.
I hardly think that standing at a ski lift making sure no one falls as they get on (or off) a chair is 'skilled'. These are basically kids just trying to make a few bucks (and perhaps get in some FREE skiing) rather than working at the local Safeway which probably pays the same.
I cant speak for ski instructors but I have to believe there
salary scales are probably pretty comparable across the areas resorts. If they dont like it at Vail, they'll just move to another resort. I believe, however, that there is probably a certain amount of prestige in working there.
Who can say what will and will not impact a stock in today's market. Issues that have no real effect on corporate earnings seem to make the markets go in any direction for no apparent reason. Only you can decide what's important.
Regarding Vail stock and the truthfulness of my statements. I've worked for Vail Resorts for the last six years. I'm a full-time ski instructor who primarily teaches private lessons. My clients represent the very top of the business world, especially the investment and financial side of things. This is what I'm hearing, and seeing: 1) Vail Resorts is considered a "cocktail party" stock. You pick up a few shares so you can tell your friends. It's a prestige thing. You could probably get a better return at the crap tables. 2) Real estate is a big part of the Vail/Beaver Creek success. After the Bachelor's Gulch build out (5 years)real estate will be in short supply. 3) The union may not happen this year, but it brings to light the importance of the issue. You've got 1500 ski instructors (not including Breck and Keystone), all with some degree of intellectual property to protect, making more than $400 a day for Vail Resorts. The average full-time private ski instructor gets about $120-$150 per day. Ski school is the third largest profit center, behind F&B and ticket sales. A union will seriously change the profit picture in this area. 4) One terrible snow season and profits will get slammed.
My point? It might not be the best investment. But you have to decide that.