BoeingBoy:
BoeingBoy said: “Of course, the usual GAG devotees bought it hook, line, and sinker.â€
USA320Pilot comments: What’s a GAG?
BoeingBoy said: “What money (see #1)â€
USA320Pilot comments: Come to think of it, you’re right. I sat in a MEC meeting and heard Doug Mowrey say that the pilots did not need the equity because it would be worth nothing and then he negotiated it away against the advice of the advisors.
Interestingly MEC Vice Chairman Kim Snider’s report to the MEC said, “Some have suggested that since it is possible that once again management might have tried to change a deal (after entering bankruptcy) that there was no opportunity lost by not accepting the offer of 19.33% of the Company stock. Such thinking is in a word "goofy" as no negotiator wants to be dealing from a weaker position instead of a stronger position.â€
Moreover, “The loss of stock caused by rejecting the Company's offer, prior to bankruptcy, of 19.33% of the stock has turned out to be much greater than it originally appeared,†Snider noted.
Yeah, you’re right…what money?
I sat at the MEC table on September 10 as a voting MEC member by proxy and heard Doug Mowrey report what Garland Jones reported that the pilot’s “went from 19.33% to a 1.25% Equity position, and a reduced Profit Sharing Plan, due to escape clauses that the Company added after we entered bankruptcy on Sept. 12. And we also went from a 50% reduction in our DC Plan Contribution (for example, from 40% to 20%) to a flat 10% for everybody post bankruptcy.â€
Yeah, you’re right…what money? You and the other pilots lost it due to the PIT/PHL REps. that you seen to lovingly support!
BoeingBoy said: "you claim that everyone including the advisors (xcept PHL/PIT) were in favor of accepting the company's first offer but yet say that the advisors rocommended countering with "about 85% of the ask"!!! Seems like a contradiction..."
USA320Pilot comments: No, it’s not a contradiction because the idea in caucus of accepting the company’s proposal or a legitimate counter of 85% of the company’s ask never proceeded because the PIT/PHL Rep’s used their “roll call†vote to stop the process. The counter was about one-third of the ask and then as PITBull said, ““Every group gave more than the company asked originally. Why? Because we were in BK and the company knew they could. Every time any group came and countered the company, the 'ask' increased and became a demand.â€
PitBull’s comment is dead-on accurate and an excellent point. Moreover, what PitBull said was exactly what the ALPA advisor’s told the MEC would happen, which is why the MEC should have listened to the advisor’s and accepted the company’s first offer or made an reasonable counter offer, but the PIT/PHL Reps said “no†and never let the process proceed.
Best regards,
USA320Pilot