Airline, Attendants Ready For Concession Talks

[USA320Pilot]

Networking:

Networking asked: Yes, this seniority thing has me stumped. I wonder what the company wants to do with the CWA seniority. Anyone have any ideas?

USA320Pilot: In my opinion, to reduce TOS pay differences between the LCC workforce and US Airways’ employees.

Respectfully,

USA320Pilot

 

[PITbull]

Here we go again, same old crap differant day.

different group.

 

[PITbull]

USA320,

Facing this same management, is the same as facing a BK judge. If we have to, we will take our chances with the "unkown" vs. the "known".

 

[ACrazy8]

I agree with PitBull....100%.

 

[USA320Pilot]

PITBull:

PITBull said: "Facing this same management, is the same as facing a BK judge. If we have to, we will take our chances with the 'unkown' vs. the 'known'."

USA320Pilot comments: With all due respect, I disagree. During the last formal reorganization Judge Mitchell agreed with every company motion. Furthermore, the same thing is occurring in the United Airlines formal reorganization.

History has shown that most of the time Arbitrator's and Judges agree with management, especially under the Bush Administration. I believe there is nothing certain in bankruptcy and in the end, the market will decide our pay and benefits.

No company whether its Lowe's, Dell, Cisco, or US Airways can pay their employees a compensation package more than the competition. US Airways is at a crossroads and the LCC's have targeted our airline.

I am confident change will come for all us and will be more painful if we do not cut new accords outside of bankruptcy.

In his webcast, ALPA MEC Chairman Bill Pollock said, "It’s going to be a rough road ahead, and as during the past restructuring measures, this will not be an easy process. We’re going to be involved in another set of discussions with management that will mostly likely continue to bring more change into your life," which is a point I agree with.

Best regards,

USA320Pilot

 

[700UW]

But at that time US did not squander almost $4 billion in giveabacks, and labor code in BK are more stringent then other parts to prevent what Judge Mitchell did to labor contracts.

Lets see if it will sink in this time!

Levine also went over all the procedures and steps in the bankruptcy codes. One item she covered in depth is the 1113 letter, which refers to the section of code that ensures that a company negotiates with the union before they seek abrogation of the labor agreement. When a company seeks protection, the agreement remains in effect. When a union negotiates an 1113 letter it secures an agreement with the company showing that the company will not seek further cuts from labor. To this date, no company that has had an 1113 letter negotiated has ever asked the court to abrogate it.

Companies that request abrogation of the labor agreement but it must meet the following nine (9) distinct requirements:

1. The debtor in possession must have made a proposal to the union.
2. The proposal must be based upon the most complete and reliable information available at the time of the proposal.
3. The modification must be necessary to permit reorganization.
4. The modification must provide that all affected parties be treated fairly and equitably.
5. The debtor must provide the union with such relevant information as is necessary to evaluate the proposal.
6. The debtor must have met with the collective bargaining representative at the reasonable times subsequent to making the proposal.
7. The debtor must have negotiated with the union concerning the proposal in good faith.
8. The union must have refused to accept the proposal with good cause.
9. The balance of the equities must clearly favor rejection of the agreement.

 

[PITbull]

USA320,

There is no airline in the history of aviation that has taken or has been asked to take 3 ( I repeat...3) major concessions in 18 months span from the employees, along with 20,000 employees on the street and many more to be on that list in the future with these concessions.

Just what the hell are we saving....you? Management?

A judge will be able to see that the employees have sacrificed. No one can say we haven't.

To the extent that managment expects...is another story.

 

[USA320Pilot]

700UW:

Let's see if this sets in. The company won every labor motion, that's 100%, during the last formal reorganization. Some ALPA officials are reporting to their members that if the company files Chapter 11 that any union that does not participate will get "whacked" and it will be more painful.

Therefore, if the IAM or any other union does not participate in the "Transformation Plan" then most observers believe the airline will cut employee costs even more or fail.

Thus, if the company uses the S.1113 process and wins, then for those employee groups that reach consensual accords their profit sharing and stock options will have a higher capital gain.

Respectfully,

USA320Pilot

 

[sfb]

If I was a member of your labor group I accept HP wages and benefits before taking my chances in court. A judge isn’t interested in what a labor group has given in the past, especially if it means saving the company. The company can prove that it will make money with the new business plan. This includes the 6 cents cost structure, which a judge will rule in the company’s favor to abrogate any CBAs, if needed. Pitbull needs to wake up and realize that the times have changed and so will their wages.

Unfortunately, you have little understanding of bankruptcy law. The judge can abrogate the CBA's, this is true, but he or she cannot impose a new contract (proposed by the company) upon the represented labor groups. The various labor groups can choose to accept the new contracts or reject them (i.e. strike/exercise self-help).

Given the company's current cost structure, it would be virtually impossible for the company to reach a 6-cent CASM unless the employees actually were to work for free. From the 1Q financials, mainline CASM excluding fuel was 10.02 cents/mile. The labor component of CASM was 4.44 cents/mile. So if you were to reduce labor costs by just over 90%, you could reach a 6-cent CASM (holding all other things equal). Virtually all other expenses for the company should have been cut to the bone during the first bankruptcy, so where can management find room for additional cuts?

 

[USA320Pilot]

Looks like we're not alone.

See Story

Regards,

USA320Pilot

 

[USA320Pilot]

Sfb:

Sfb said: “Given the company's current cost structure, it would be virtually impossible for the company to reach a 6-cent CASM unless the employees actually were to work for free. From the 1Q financials, mainline CASM excluding fuel was 10.02 cents/mile.â€

USA320Pilot comments: With all due respect, I fully understand the bankruptcy process and I have held discussions with union officials, advisors, and money managers on this very point.

According to this week’s AW&ST, US Airways "transformation" strategy aimed at reducing its unit costs from the highest among the network airlines to the lowest, reaching levels of Southwest and other low-cost competitors. The airline plans to reduce fares and deemphasize hub operations, which would increase aircraft utilization and operating efficiency. It seeks further concessions from its employees, and it wants to begin the new wave of cost-cutting by summer. It's trying to negotiate more favorable costs at Pittsburgh, including a $500-million reduction in airport debt obligations, and it's threatening to pull down its hub operations and employment levels there if state and local officials don't come through. "While the company's preference is to complete its transformation on a consensual basis," US Airways told the SEC May 7, "failure [to attain low costs] will force the company to reexamine its strategic options, including but not limited to asset sales or a judicial restructuring."

According to ALPA MEC Chairman and board member Bill Pollock, who I have known for over 25 years and is a man of immense integrity, Mr. Lakefield has pledged his commitment to the survival of the airline and to working with ALPA on the Plan. While this reengineering of our airline may require additional investment from our pilots, Mr. Lakefield has made it clear to the other labor groups that ALPA will not shoulder the burden for any other group,†he said.

“The Plan, in fact, will not work, unless all parties agree to participate. The (comprehensive) plan makes several changes to our business model, including creating a hybrid operation in Philadelphia, increasing aircraft utilization, flying to passengers’ top destinations from LaGuardia, Boston, and DC, and increasing Caribbean and European flying. The Plan also establishes an aggressive new marketing strategy that lets our customers know that US Airways’ fare structure has been simplified and lowered, giving us a competitive product to challenge anyone, anywhere,†Pollock noted.

“I expect this Transformation Plan, if properly implemented, to solve US Airways’ structural and operational problems while achieving profitability. It must allow US Airways to evolve, survive and prosper in an industry that is facing increasing competition by the low cost carriers that are clearly preferred by both our business and leisure passengers,†he said.

SFB, Pollock has seen the plan and confidential information. With all due respect, I find it interesting that your uninformed perspective is in conflict with Pollock's.

Respectfully,

USA320Pilot

 

[USA320Pilot]

700UW:

It’s apparent you are out of ammunition, but that’s o.k., because if your union does not reach an accord, the profit sharing for me and other employees will be greater. Thanks in advance for sacrificing even more to help other employees.

Respectfully,

USA320Pilot

 

[700UW]

700UW:

It’s apparent you are out of ammunition, but that’s o.k., because if your union does not reach an accord, the profit sharing for me and other employees will be greater. Thanks in advance for sacrificing even more to help other employees.

Respectfully,

USA320Pilot

Your statement shows your true color, GREED and screw everyone else as long as you get yours.

And don't count your chickens before you eggs hatch, you been singing the same tune for a couple of years and US is still in the same boat.

Dont worry your unemployment check will be the same as everyone else. Get ready for it.

You run out of more false facts?

Been three months now and we are all eagerly awaiting your explanation of the imaginary "painful" clause you dreamed up!

 

[Hunter]

PITBull:

The company is making it known that management will work with labor to find mutually acceptable solutions, but management is prepared to file a S.1113 motion of liquidate, if necessary.

Respectfully,

USA320Pilot

USA320 -

With all due respect, you do not know of what you speak. Take it from someone who has been down this road, a section 1113 filing by US Airways is only possible within the confines of a chapter 11 reorganization not as a prelude to a chapter 7 liquidation, as you suggest.

A section 1113 filing has the effect of compelling the two parties to negotiate in good faith. At the conclusion of that negotiation, and only at the conclusion of that negotiation, does a judge become involved. His/her involvement is limited to ruling on any unresolved issues.

The idea that US Airways will get whatever it wants utilizing this process is fantasy, to say the least. If US Airways does indeed pursue this course of action, they will likely not survive the long, protracted process. This is nothing more than extortion, plain and simple.

My thoughts are with the US Airways flight attendant group. My advice, stay unified behind your elected union leaders. Stay informed. Take what others, such as USA320's "advice" with a grain of salt. Demand that AFA employ the best financial advisors, labor law attorneys and contract negotiators to repel this shameless hoodwink.

In Unity, from a former 18-year TWA F/A and currently furloughed AA F/A,

Hunter

 

[700UW]

Amen Hunter,

Call him out and expose him for what he is!