35 MILLIOM $$$$

[PITbull]

mrplanes,

Can you give any explanation WHY ALPA MEC did not bring this information out to its members? I found out today that All Union leaders who participated on the Creditors committee (which ALPA did and had a vote) did NOT CHALLENGE THIS in court? I have already posed this to our MEC at AFA and I want answers on why this knowledge was held from the AFA MEC by the International.

If IAM or ALPA reps can explain their silence please do.

You have to think why would union leaders not devuldge this info to the membership???? And, I mean you have to really think?? Who were they trying to save?

 

[Upsgnr]

ALPA MEC knows how to play the game as well as management, can you say "their was silence was acquired"?

Now that management is playing hard-ball they blew the lid off the $35 million payment.

 

[PITbull]

Ups,

That's the point. Just because ALPA is upset over this they decide now to reveal all (or none of us would have known) now. No excuses for management; but they are mangement. But, the worst of this is to have our Interanational union reps in court session, knowing full well that our contracts are being "ripped" to shreads and they remain silent. NO WONDER THIS COMPANY THOUGHT THEY HAD US IN THE BAG! LEADERSHIP THAT LOOKED THE OTHER WAY WHILE THE COMPANY PORTRAYED U AS READY FOR LIQUIDATION!

When this dust settles, I suggest we all hold our leaders accountable for this silence and raise our voices and power when elections roll around. Or "RECALL" THESE DAMN B_ _ _ _ _ _ S!!!

In the meantime, I also found out from a law firm that we have one year to challenge this and demand the money be returned TO OUR COMPANY! I suggest that everyone here seek their leaders and tell them we want our LEGAL departmenhts in court to challenge that this money be returned. Let them hash this out in court and find out WHAT TRIGGERING EVENTS OCCURED THAT PERMITTED THEM TO RECIEVE THIS EXHORBANANT AMOUNT OF CCOMPENSATION WHEN WE WERE ALLEDGEDLY GOING OUT OF BUSINESS!!!

 

[PITbull]

Just received from CCY that Gangwal's compensation was actually a lump sum for his pension payout. $15Mils not bad for 6 years work.

Don't have any facts on Wolf yet. What was his $15Mils? Early pension payout before they terminate CEOs pensions?
Don't believe the man's retired. He's still seen walking around on the 8th floor.

Well planned out IMO. Nagin, just happened to retire 2002, as well. Wonder if his $5mil was his pension payout for being "General Council".

Meanwhile back in the "ghetto", we all lost our stocks in our 401Ks and no one tried to protect us, not even the Union leadership, nor the courts.

 

[PITbull]

atc,

I beg to differ with you. This management did not challenge it because they are mangement. But what got disclosed today is WHY did ALPA wait until now to put that as part of their MEC-code-a-phone message?

I know from CCY today that our Union's legal department that was present in all these hearings and sat on the creditor's committee with the ability to VOTE (accept AFA did not have a vote) to ensure and protect the membership NEVER CHALLENGED THIS! Not only that, they did not even devulge this to THEIR MEMBERS!

I am not talking local leadership but THE BIG INTERNATIONAL LEADERSHIPS ACROSS THE BOARD. What? Did they all get together and say lets not tell the membership about this otherwise they WON'T RATIFY THESE FORSAKEN AGREEMENTS?

Appauling!

 

[MrAeroMan]

35 Million!! WOW!!
I am man enough to admit when I am wrong and I am here right now to do just that. I believed Mr. Seigel (I'm with Mike on calling him Dave...those days are done!) when he said he'd change things around the place. I've been had (again!) and it's gotten too much to deal with.
I have said this before and I'll keep saying it, Steve Wolf, IMHO, should be given the Frank Lorenzo treatment and banned from any dealings with commercial aviation for the rest of his life. Not that it matters with his cool payouts he seems to be getting wherever he goes but that would take the one thing from him that makes him tick. Guys like that aren't in it for the money. They're in it for bragging rights. He wants to be able to brag at the club or with the politicians he's bought off over the years. Take his management dealings away and you take away his bragging rights.
I hope ALPA sees fit to negotiate a clause in their upcoming agreement (yes, they will negotiate an end to this pension mess) that strips those 3 beanheads of the 35 million and returns it where it belongs.
I was wrong for believing in Mr. Seigel. He let a lot of people down by allowing that 35 million to go out the door. I don't care what any of the circumstances were, it was wrong and he'd have a hell of a case proving fiduciary irresponsibility against all three of those idiots if they wanted to fight for the money. At least he'd show them for what they were but then again he'd end up looking just like them. Birds of a feather huh Mr. Seigel?
I'm sick of this bull from the Golden Parachute Club. You should be ashamed of yourselves.

 

[chipmunn]

US Airways gave $35 million in pension payments to top 3 former executives

PITTSBURGH (Post-Gazette) - As it was careening into financial ruin and ultimately Chapter 11 bankruptcy, US Airways paid $35 million in lump-sum retirement benefits to its former top three executives.

Stephen Wolf, who ran the airline for seven years and now serves as chairman of the board, received $15 million. Wolf is no longer employed by the carrier. His protege, Rakesh Gangwal, who resigned as president and CEO in November 2001, also received $15 million, and Lawrence Nagin, the airline's longtime executive vice president and general counsel who retired last March, received $5 million.

Although the payouts apparently took place at the time each of the executives retired, they didn't come to light until this week during a bankruptcy court hearing in Alexandria, Va. Disclosure of the payments was tucked into documents filed with the court last September and October.

During the first half of their tenure, Wolf and Gangwal were praised for their role in turning around an airline that in the mid-1990s teetered on the brink of bankruptcy. But their reputations faded as their growth strategy became undone by a recession that hit all carriers and sharp drop-off in air travel after the Sept. 11 terrorist attacks.

The three men were entitled to receive the retirement benefits as part of the employment contracts they negotiated with US Airways' board of directors. But the payouts drew immediate fire from airline employees suffering from lost jobs, benefits and pay cuts and from some outside analysts.

The payments are yet another example of "outsized compensation to management that borders on looting," said William Lauer, chairman of the Tarentum-based Allegheny Capital Management, a former investor in the airline.

The issue of the retirement benefits was raised this week during a hearing before U.S. Bankruptcy Judge Stephen Mitchell on the airline's request to terminate the pension plan for its unionized pilots and replace it with another plan.

The airline has contended that unless it can reduce its pension expenses -- what it must pay over the next seven years to cover its unfunded pension liabilities -- it won't be able to obtain the federal loan guarantee and equity funding it needs to survive. The airline hopes by scrapping the current plan and replacing it with another, it can significantly cut its expenses.

While being cross-examined by the unionized pilots' attorney, US Airways' Chief Financial Officer Neil Cohen testified that Wolf, Gangwal and Nagin received their million in lump-sum retirement payments.

The Air Line Pilots Association's spokesman, Roy Freundlich, said the testimony, which the union immediately posted on its Web site, confirmed what many pilots suspected: that the airline's top executives were protecting their pensions while sacrificing those of other employees.

The disclosure of the retirement payouts came in a time that has seen the airline's ranks slashed by more than 16,000 and management wrest more than $1 billion in annual wage and benefit concessions from its unionized workers.

The pilots, which as a group have agreed to $565 million in annual concessions, contend that if their pension plan is abolished and taken over by the federal Pension Benefit Guaranty Corp., they could lose as much as 65 percent of their benefits.

This isn't the first time that Wolf and Gangwal have been criticized for their salary and benefits.

In August 2001, when the deal to merge with United Airlines fell through, Wolf, Gangwal and Nagin agreed to forgo their contractual rights to resign that fall -- a move that would have made them eligible for severance packages totaling a combined $45 million. The three made the move amid protests from workers.

In the next month, Wolf and Gangwal came under fire again from labor unions for retaining their full salaries at a time the airline was slashing its work force and seeking concessions from its employees following the 9/11 attacks. The pair later agreed to give up their salaries and benefits for the last 15 weeks of 2001, moves that cost them nearly $200,000 apiece.

In 2000, Wolf's compensation from all sources totaled $11.6 million, including $7.6 million in reimbursement for taxes paid on restricted stock received over the years. Gangwal earned $12.1 million in total compensation, including a $7.2 million reimbursement for tax liabilities.

For a pictorial view click onto:

http://www.post-gazette.com/businessnews/2...usair0226p1.asp

 

[1ab]

What does it matter about the $35mill...even if it was not paid it would not make a difference of U obligations to the pension fund..
That 35 mil was paid out due to the constract U and the BOD made with W&G ..Not their fault a performance clause was not in their constract.
Point is a one time payment of $35 mill really does not matter in view of U plight.

Someone also could argue that if you ALPA boys had given in on W&G request for more RJ's maybe U would not be in this predicament right now.
So again U pilots must share the blame for with past management for U predicament.
The first to suffer were the non-pilot work force who took drastic cuts with no pensions.
But anyway all that is in the past .. if you want a future you ALPA boys should be working on a solution to get a new pension plan in place before march 18 so U can emerge out of BK b4 any more sh1t starts.
The alternative is more of you out on the streets. Now think what that alternative will be when you have to settle for some job making minimum wage.

So U pilots task on hand is stop belly aching about the past and their pension that going..and come up with a new fair pension.

 

[oldiebutgoody]

I think that whether or not ALPA wins the pension case they should file suit against this and the last management teams. With all the recent Enron and Worldcom sentiment, as well as Congress wanting to make examples out of people, they may make a strong statement to ANY management team that wishes to prosper at the expense of employees and creditors. I wonder if Bronner knew anything about this before he sunk money into U. He may even want to join ALPA in this lawsuit!

 

[LavMan]

This is outragous and sounds like we employees have a suit in regards to fraudulant conveyance:

Levine continued, explaining the two types, but described Chapter 11 filings in depth. She explained the process and enlightened the attendees on all aspects of a chapter 11 filing. One thing that has stuck out in the US Airways members was a term called Fraudulent Conveyance.

Fraudulent Conveyance: A transfer of the debtor’s property is fraudulent if, made with the actual intent to hinder, delay, or defraud a creditor. (Note that sometimes the debtor’s actual intent maybe inferred circumstantially by certain “badges of fraud.â€￾ Alternatively, a debtor receives less than the reasonably equivalent value and was insolvent at the time of the transfer or became insolvent because of it or had “unreasonably small capitalâ€￾ remaining after the transfer for its business operations or intends to incur debts that it will be unable to repay as they mature. Many of the US Airways members asked hard-hitting questions about this as US Airways sold off airplanes and parts for less then fair market value not too long ago.

 

[DCAflyer]

Here's another suggestion.

Unions file (with dispatch) motions with the BK court to set aside our retructuring agreement on the grounds that had we known material facts, to wit, that the company paid out millions to the very people responsible for the situation at US Airways, the rank and file would NEVER have agreed to the concessions, round 1 OR round 2. I suspect that if these motions start getting filed, the company will (a) file a motion to pull back the original 35 million fraudulently-conveyed dollars, (B) find the money to fund the pilots' pension (Hell, get back the $35M and we're half way there!), and © get their butts back in the boardroom and begin negotiating in earnest with the MECs to do some serious damage control. Maybe they'll give US something for a change!

Teddy, are you listening?

DCAflyer

 

[ilg30/7]

1ab,

With all do respect, I disagree. Yeah, the three stooges probably had a contract stipulating these payments. So did every other major employee group on the property. These contracts were renegotiated, under the threat of first bankruptcy and then liquidation. We have vendors we had contracts with who are settling for pennies on the dollar on their claims. We had lease companies we had contracts with for our aircraft. Thrown out by the court and renegotiated under more favorable terms for USAirways. In fact, it appears as though the only contracts that USAirways' senior management decided to honor were... you guessed it... the contracts of USAirways' former senior management. Suprise suprise.

$35 million makes no difference to the survival of USAirways? OK, I'll accept that.... then my meager $30,000 a year salary certainly doesn't make a difference either. When do I get recalled? The answer is: I don't. Because when your company is bankrupt, EVERY PENNY COUNTS.

Certainly the pilot pension issue must be worked out, and irregardless of what the three stooges looted, an agreement must be cobbled together in order for USAirways to move forward. That still does not excuse what they did or change the fundametal fact that in the most trying of times, the few wealthy, elite management types of this company were treated under one set of rules, while the rest of us were dealt with in quite another, harsher set of rules. Shameful.

Stephen Wolf, Rekesh Gangwal and myself started at this company at about the same time (I've got about a year's seniority on 'em) and while I certainly realize that a senior executive is more valuable and compensated better than a lowly Crew Scheduler, It strikes me how quick and unceremonious my plunge to earth was, while I look up and see them floating gently down under a golden parachute.

Because I'll guarantee you one thing: I did my job a hell of a lot better than they did theirs.

 

[Hula Girl]

Did I hear correctly that 5 year retired pilots may have to give back their lump sum retirement benefits? Why wouldn't this apply to the Wolf, Gangwal, and Nagin?

 

[RowUnderDCA]

[blockquote]
----------------
On 2/26/2003 1:17:12 PM Hula Girl wrote:

Did I hear correctly that 5 year retired pilots may have to give back their lump sum retirement benefits? Why wouldn't this apply to the Wolf, Gangwal, and Nagin?
----------------
[/blockquote]


Where did you hear that? Do you have a cite? Please provide.

 

[PITbull]

[blockquote]
----------------
On 2/26/2003 10:23:47 AM DCAflyer wrote:

Here's another suggestion.

Unions file (with dispatch) motions with the BK court to set aside our retructuring agreement on the grounds that had we known material facts, to wit, that the company paid out millions to the very people responsible for the situation at US Airways, the rank and file would NEVER have agreed to the concessions, round 1 OR round 2. I suspect that if these motions start getting filed, the company will (a) file a motion to pull back the original 35 million fraudulently-conveyed dollars, (B) find the money to fund the pilots' pension (Hell, get back the $35M and we're half way there!), and © get their butts back in the boardroom and begin negotiating in earnest with the MECs to do some serious damage control. Maybe they'll give US something for a change!

Teddy, are you listening?

DCAflyer
----------------
[/blockquote]

You bring up some very good points.