The best way to prepare for a recession is before it happens. And the odds are high that we here in the U.S. will see an economic downturn. More than half of the global economists predict a recession by this time next year.

Reports indicate the last recession happened in December 2007 during the second term of the Bush administration. The U.S. economy exited the recession in June 2009 in the first six months of the Obama Administration.

Sadly, during a recession, the economy shrinks, people lose their jobs, and corporations curtail hiring. So, one of the best things we can do for ourselves is to cut back on credit card spending, if possible, pay down debt, and save a bit more.

One of my biggest gripes, though, is you can’t save what you don’t have. So, what to do? Well, I found myself in a similar situation prior to the COVID-19 lockdown. And here’s an article I wrote then. I’m reposting it for myself. But if it helps you, take what you need and ignore the rest.

Note: For informational purposes only and is not intended to be personal financial advice. Please consult your financial advisor when making decisions regarding your financial management.

From 2020
“Shelter in place” and “Social distancing” may be new catchphrases due to the Coronavirus, but I’ve been practicing since I left the airlines in 2016. “Been around the world and, I, I, I.” (shout out to Lisa Stansfield) more times than I care to admit. Now, I no longer need to leave my home to work. As a writer, I’m in front of my computer screen, and the world comes to me. But before I settled into this new work-life routine. I needed to debrief. And you, too, might want to use this downtime to do the same. Before this crisis ends, it may be your last chance to figure out who you are and what you love to do.

Conversely, you may need that information to decide what to do next. Here’s why this is important. The law requires An FAA-certified position like a flight attendant. But if there are no passengers, flight attendants can face furloughs. According to the Washington Post (“The First U.S. Layoffs from the Coronavirus are Here,” March 11th, 2020), there are already layoffs in several industries. So, you might find yourself off-balance if your employer furloughs or fires you.

I speak from experience. It happened to me when United Airlines involuntarily furloughed 685 of us on April 1st, 2014. There was no pandemic. Instead, it was a management vs. labor dispute in the aftermath of the 2010 merger and dueling collective bargaining agreements. Flying was brisk. The economy was on the upswing, but management decided some of us had to go.

Legacy United Flight Attendants were more expensive than legacy Continental Airlines Flight Attendants. So, under former United Continental Holdings Chairman & CEO Jeff Smisek, they furloughed the last hired.

SOFT LANDING

Initially, management offered us Hobson’s choice. Crossover and work under the Continental Airlines collective agreement contract. Continental Airlines Flight attendants made less money and had unfavorable work rules. And United Flight Attendants would lose seniority. Many of us realized that wasn’t a choice and faced management’s decision to furlough us involuntarily. Labor unions use grievances to remedy contract violations on behalf of their members. Unfortunately, management never addressed the 2-14 grievance AFA -CWA filed against United for the involuntary furlough.

Corporations seem to lay off at the beginning of fiscal quarters, as United did with our group in April 2014. I’m not an economist. The business is leaner without the additional salaries and bennies on the books.

When United management furloughed the 685, they gave us

• a generous severance package,
• three months of paid health insurance,
• And flying privileges.

Management didn’t contest our unemployment claims. The labor contract agreement stated rehiring us at the same seniority and pay. Seven months after the furlough, they did just that.

On Monday, March 16th, 2020, Airlines for America petitioned the government for $60 billion for help during the crisis. United Continental Holdings, Chief Executive Officer Oscar Munoz is A4A vice-chairman. Whether that assistance will trickle down to the airline’s rank and file is unknown. According to United’s March 15th press release, management has already instituted a hiring freeze. The CEO took a pay cut and asked some employees to take a voluntary furlough.

But don’t get it twisted. Getting laid off is still a mind-f-ck. It’s like you’re in Coney Island’s Hell-hole ride, stuck to the wall when the floor drops from under your feet.

Consider taking time off to prepare for your next chapter. Do it before receiving a severance package, or HR hands you a “pink slip.”

RESUME’ UPDATE

Do it while you’re still of sound mind and things are relatively calm.
Before updating your resume – stop to determine the following:

• Who you are,
• What do you want to do,
• Why is it your calling?
• When are you most productive and needed
• Where you are most alive and present to perform,
• And how you help those in need get what they want. And how you’ll earn compensation for your talent and expertise?

You may even want to position your career goals as if you were business – and complete a business model canvas.
Once you jot down some answers, it will help to revise your resume/bio for the job you really want. Next, you will notice you’re psyched about finding the right career position, employer, customer, or client.
You’ll be ready if you should face the dreaded layoff. You’ll pursue your dream job or even start a consulting business. Much Success!

Question of the Day: How would we legally earn a living if we’re on indefinite lockdown? Our economy makes money on social distractions, escapism through media and entertainment, and the distribution of goods and services. How would we communicate without wireless technology and the internet? How would we survive if life imitated art and we found ourselves without electricity living like we were characters at the end of “The Day The Earth Stood Still?” This winter, the Winter of 2019-20, has shown us we, in the West, aren’t as self-sufficient as we’d like to believe. ~MH