USA320Pilot
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Airline wants 23% wage cutbacks now and $950 million annual reductions
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During the past 6 months ALPA's financial and legal advisors warned that if the company entered bankruptcy the cuts would be larger than $800 million. In the case of ALPA, the RC4 ignored the advisor’s opinion. Guess what? The RC4 were wrong and the advisors were right. Presumably the other unions obtained the same advice.
During bankruptcy airlines always suffer from passengers "booking away" and increased costs associated with a "judicial restructuring". Moreover, in the case of US Airways the company warned employees that RJ financing would expire no later than September 30 if the transformation plan with labor participation was not implemented. This will result in a further loss of revenue during a difficult period with oil now above $50 per barrel.
If any employee does not like the deeper cuts than they should complain to their union who created this problem. Management and ALPA's advisors were up front and told employees cuts would be deeper in bankruptcy. In fact, In a September 19 letter to all pilots ALPA MEC chairman Bill Pollock said, “US Airways president and CEO Bruce Lakefield has been upfront and forthright about US Airways’ plans for a possible bankruptcy filing. There have not been any surprises from him, and his integrity still governs his relationship with his employees.â€
Regards,
USA320Pilot
See Story
During the past 6 months ALPA's financial and legal advisors warned that if the company entered bankruptcy the cuts would be larger than $800 million. In the case of ALPA, the RC4 ignored the advisor’s opinion. Guess what? The RC4 were wrong and the advisors were right. Presumably the other unions obtained the same advice.
During bankruptcy airlines always suffer from passengers "booking away" and increased costs associated with a "judicial restructuring". Moreover, in the case of US Airways the company warned employees that RJ financing would expire no later than September 30 if the transformation plan with labor participation was not implemented. This will result in a further loss of revenue during a difficult period with oil now above $50 per barrel.
If any employee does not like the deeper cuts than they should complain to their union who created this problem. Management and ALPA's advisors were up front and told employees cuts would be deeper in bankruptcy. In fact, In a September 19 letter to all pilots ALPA MEC chairman Bill Pollock said, “US Airways president and CEO Bruce Lakefield has been upfront and forthright about US Airways’ plans for a possible bankruptcy filing. There have not been any surprises from him, and his integrity still governs his relationship with his employees.â€
Regards,
USA320Pilot