Agreement Reached?

[700UW]

The following is from an Reuters Article:

Also Friday, US Airways' management and pilots union said they have reached an agreement over pay rates, health insurance and other benefits for the airline's upcoming regional-jet service.

"The big thing they got was the pay," union spokesman Capt. Jack Stephan said. "We got the health insurance and 401(k) we wanted."

http://biz.yahoo.com/ap/040206/earns_us_ai...airways_32.html

 

[USA320Pilot]

Last nights agreement between ALPA and the company resolved all MDA grievances and clarified numerous items necessary for the delivery and start up of the Embraer Division. The first EMB-170 aircraft is now scheduled to arrive in two weeks.

Separately, according to the code-a-phone the Negotiating Committee will continue to meet with management the week of February 9th to evaluate the company’s need for relief regarding small jet scope issues and appropriate protections and returns should the Association agree to any contractual modifications.

Yesterday the Beaver County Times reported (See Story), ALPA will also accommodate the company's request for more flexibility, Stephan said. Contracts now stipulate which of US Airways' airlines and affiliates can fly regional jets and which pilots are eligible to fly the jets. In May, US Airways placed an order for 170 regional jets, worth $4.3 billion, but its financial health has been the topic of much speculation in recent months. "If the company credit rating falls below the B-, then we stand the chance of losing our financing on the regional jets," US Airways spokesman David Castelveter said in January.

USA320Pilot comments: There are Wall Street reports that GECAS is forcing US Airways' hand to change RJ scope provisions and the discussions with ALPA could permit the spin off of PSA, resolution to the APL CRJ-700/705 dispute, potential APL relief, and adjustments to delivery positions/J4J, and would permit US Airways to provide an alternative for United Airlines to solve its Dulles problem. Separately, this could move the business partners closer to their merger.

Yesterday the Pittsburgh Post-Gazeete reported The company is worried that GE Capital Corp., which financed a large order last year for the RJS from Brazilian aircraft maker Embraer and Canadian aircraft maker Bombardier Aerospace, would pull its commitments if the airline's junk credit rating falls any further. To prevent that from happening, US Airways is contemplating a strategy that would involve selling or transferring some of the RJs on order to other US Airways Express commuter operators not owned by US Airways. That way, the planes would still operate under the US Airways banner, but the company could relieve itself from the costs of operating and staffing them. Such a change would require the approval of the pilots union. "The company needs to extricate itself from direct operation of regional jets," said local airline analyst Bill Lauer, and is likely conducting a "massive rethink" of MidAtlantic because of the capital expenditures it would require. (See Story)

These negotiations will help stabilize US Airways and permit the company to obtain ATSB relief. During today's analyst a news media conference call US Airways chief executive Dave Siegel said the federal loan guarantee covenants require that any asset sales must be applied to the loan guarantee (payoff) with an inverse amortization order. In addition, S&P reported Management stated that it "will take any actions necessary to meet" those covenants, and is exploring major asset sales to raise funds that could be used to partly pay down that loan. Ratings will be lowered if such covenant relief is not achieved, while success in those negotiations would buy time for US Airways to seek further cost concessions from labor and pursue other expense initiatives.

The discussions are separate from the potential "work rule" and other contract changes, which could be requested by management and may have been discussed at today's Labor Advisory Council meeting. According to yesterday's Washington Post article regarding US Airways, the newspaper said, "A source close to the airline said executives will stress the urgency of the need for concessions with a "no kidding" approach and will indicate that they are prepared to begin taking bids on assets such as the Northeast shuttle or part or all of a hub operation." (See Story)

Respectfully,

USA320Pilot

 

[USA320Pilot]

Today the Pittsburgh Tribune-Review reported negotiators for the Air Line Pilots Association and US Airways settled Thursday night on pay rates for MidAtlantic's new Embraer 170 planes. Under the tentative pact, a captain's pay would be capped at $58,000 a year on the 70-seat aircraft, and a first officer would make about $35,000.

"This would be an extremely competitive pay rate for the company that should go a long way in addressing their (regional jet) financing concerns," said pilots union spokesman Jack Stephan, adding that he is confident the union's governing body would "put its stamp" of approval on the proposal, the newspaper wrote.

GE Capital is financing US Airways' $2.1 billion purchase of 85 Embraers; the purchase is expected to be completed by September 2006. But the lender has been concerned about uncertainties clouding US Airways' ability to repay.

USA320Pilot comments: Some, but not all the way that's why the Negotiating Committee will continue to meet with management the week of February 9th to evaluate the company’s need for relief regarding small jet scope issues and appropriate protections and returns should the Association agree to any contractual modifications, according to the February 6 ALPA code-a-phone.

Respectfully,

USA320Pilot

 

[PITbull]

A320pilot,

I'm sorry, but are those pay rates suppose to be a "good thing". I thought one of the previous articles I read, that ALPA spolesperson Stephens said that they were real pleased with the wages/healthcare/ and 401K that they settled. :blink:

I know the company's financial concerns are being addressed, but what about the pilot's financial concerns? Or doens't that count cause they stil can have an airline job that pays $35,000 a year?

 

[Dea Certe]

Wow. Those are some pretty low wages for people who spend years and lots of money to get the ratings and hours needed to score a job with a commercial carrier.

It did get me thinking though. I recall reading several articles about how difficult it is to find a good OB/GYN doctor. According to what I read it was the malpractice insurance driving up the cost of womens health care and discouraging doctors to specialize in that field.

Also, I've been seeing more articles about doctors forming or joining unions in an effort to get fair wages from HMO's. Seems I also recall doctors becoming angered by insurance companies denying or refusing to pay for treatments they've prescribed for their patients.

Will the beancounters drive good, well-trained people away from these professions? I don't know about you but I want my doctors and my pilots to be among the best in their chosen fields.

One reason the airlines have got many employees by the neck is the love of aviation. But what happens when the need to feed and clothe ones family outweighs the love of ones career choice? Will we end up with a drastic shortage of pilots, mechanics and doctors in the future? Or will we settle for less than the best?

Or should we all just become lawyers, MBA's or CEO's?

Dea

 

[coolflyingfool]

If I understand right, their salaries are "capped at $58K and $35K a year. Capped means you can make no more. So the F/O and Capt. that are just starting out would possibly make less? OUCH! I give credit to those who do it. Fly safe and true.

 

[pitguy]

That is sickening!!!


Sounds like ALPA sold 'em out. Those guys need to get in there and get another union.

 

[Bear96]

If I understand right, their salaries are "capped at $58K and $35K a year. Capped means you can make no more. So the F/O and Capt. that are just starting out would possibly make less? OUCH! I give credit to those who do it. Fly safe and true.

I guess that is the TOP of the PILOT pay scale?!?!

What are the poor starting F/As gonna be making?

 

[flyin2low]

Wow. Those are some pretty low wages for people who spend years and lots of money to get the ratings and hours needed to score a job with a commercial carrier

It's been happening for years at the wholly owneds. There are professionals with almost 30 years making those low salaries. Those professionals are being 'sucker punched' by their union, ALPA. The same one who represents the Mainlines pilots. The low wages for MDA don't matter to them, because they don't have to work there.

 

[flyin2low]

What are the poor starting F/As gonna be making?

They start at $17/flt hr, if they are off the street or $22 if they are from Mainline.

15,000-19,000 per year.........

 

[autofixer]

Whatever it takes to save their sorry bleeping left seat. It is the "I've got mine, now you get yours" mentality. All of you mainline pilots should be ashamed, I know I am. But even more sad is the fact that there will be guys and gals who will fly for this amount of pay. I pay one of my junior mechanics (who just got out of jail) more. ALPA is a sorry sack of dung! JMHO. Ed

 

[mwereplanes]

"But even more sad is the fact that there will be guys and gals who will fly for this amount of pay."

That is the key point here. They stand in line to fly to make these crap wages. Ornstien said it best when he stated he must be paying too much because he still has tons of applications for his pilot jobs. There will be no pilot shortage because of the "love of flying".

ALPA is weak because of the members. No one will step up to the plate and say enough is enough. That is why the U MEC is about to cave once again. Because they are terrified they might have to actually go looking for a job. The bottom line is that supply and demand is working in full force in regards to pilot jobs. Siegel knows it and so does Ornstien. No backbone means low wages. That's how they get away with it. The furloughed guys are as bad as the mainline guys. One sells out the other and the other works for crap because he is afraid to try anything else but flying hoping against hope things will improve.

mr

 

[autofixer]

I for one am done with this crap! I am enjoying my new life and I doubt I will come back from leave to work with a bunch of spinless chickens and allow a bunch of FBI want-a-bes look through my underwear. There is an alternative life out there. You just have to risk it. Take control of your life, wrestle it away from the likes of SEAGULL. I am making more now than I would be at U. Sure I am risking my family's fortune and future, but what is the worst that could happen? You have to declare bankruptcy and pay cash for everything? Big deal! It is the price of REAL freedom. If you want to fly, rent a 172 or do well and buy an F-86, like a guy I know did.

 

[PITbull]

I guess that is the TOP of the PILOT pay scale?!?!

What are the poor starting F/As gonna be making?

A little over a $1,000 a month at the 5 year rate, not counting medical coverage costs.

 

[Hula Girl]

autofixer, I do not see how you can even enjoy a single breath of life with all of the anger you have spewed here. Life is too short and the circumstances that others who post here are going through is breathtaking without having to be condemned by you for working here to support their families. And good for you to hire someone who just got out of jail and that you will be paying him so much money. Thanks for pointing out that living a good honest life just doesn't pay.