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Veteran
- Aug 20, 2002
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MEC CODE-A-PHONE UPDATE
March 11, 2003
This is Roy Freundlich with a US Airways MEC update for Tuesday, March 11, with three new items:
Item 1. ALPA filed two court documents in U.S. Bankruptcy Court over the past two days.
The first document, filed yesterday, is a limited objection to the confirmation of the Company’s plan of reorganization. It states that while ALPA supports a successful reorganization, it would like certain changes to be incorporated into the reorganization plan. The filing objects to the special retirement payments totaling $35 million to Stephen Wolf, Rakesh Gangwal and Lawrence Nagin, and the Company’s reticence to recover this money.
ALPA objects to certain portions of management’s compensation plan, including the following issues:
the plan does not define the airline industry peer group utilized in various calculations,
any restoration of management pay cuts should use the same methodology as the collective bargaining agreement with ALPA,
there should be no discretion to pay annual cash incentive compensation when the Company does not achieve its objectives, and
payments under incentive programs should be delayed more years than provided in the plan
ALPA is also asking for protective language on ALPA’s rights under the bankruptcy judge’s decision on the Company’s motion to terminate the pension plan, and the documentation on ALPA’s tag-along stock rights in regard to RSA, as contained in LOA 84, Supplementary Cost Reductions.
The confirmation hearing on the plan of reorganization is scheduled for March 18.
The second filing is a notice of appeal to the Judge’s decision to approve the termination of the pilots’ pension plan. This short document preserves ALPA’s right to appeal the judge’s decision.
Item 2. The MEC’s grievance challenging the Company''s unilateral action to terminate the pilots'' pension plan is scheduled to be heard at its initial level tomorrow by US Airways Vice President of Flight Operations Captain Ed Bular. The arbitration process will begin if the grievance is denied at this level. A report on the grievance ruling will be announced when it becomes available.
Item 3. A hearing on the nation’s defined benefit pension plans and their funding rules was conducted today in front of the Senate Finance Committee. US Airways Captain Marc Schuler presented a witness statement to the Committee on the effect that a US Airways pilot pension plan termination would have on the pilot group. ALPA and US Airways also filed joint testimony for the hearing calling for a legislative solution to US Airways’ pension funding problem, which would permit restoration funding by amortizing the funding requirements over a period of 30 years. To achieve restoration funding, the joint testimony calls for the support of S. 119, as well as having it applied retroactively if necessary.
ALPA and US Airways’ joint testimony and Captain Schuler’s witness statement is available on the Legislative Affairs Committee page of the pilots only website.
Please remember we have 1,827 pilots on furlough.
Thank you for listening.
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March 11, 2003
This is Roy Freundlich with a US Airways MEC update for Tuesday, March 11, with three new items:
Item 1. ALPA filed two court documents in U.S. Bankruptcy Court over the past two days.
The first document, filed yesterday, is a limited objection to the confirmation of the Company’s plan of reorganization. It states that while ALPA supports a successful reorganization, it would like certain changes to be incorporated into the reorganization plan. The filing objects to the special retirement payments totaling $35 million to Stephen Wolf, Rakesh Gangwal and Lawrence Nagin, and the Company’s reticence to recover this money.
ALPA objects to certain portions of management’s compensation plan, including the following issues:
the plan does not define the airline industry peer group utilized in various calculations,
any restoration of management pay cuts should use the same methodology as the collective bargaining agreement with ALPA,
there should be no discretion to pay annual cash incentive compensation when the Company does not achieve its objectives, and
payments under incentive programs should be delayed more years than provided in the plan
ALPA is also asking for protective language on ALPA’s rights under the bankruptcy judge’s decision on the Company’s motion to terminate the pension plan, and the documentation on ALPA’s tag-along stock rights in regard to RSA, as contained in LOA 84, Supplementary Cost Reductions.
The confirmation hearing on the plan of reorganization is scheduled for March 18.
The second filing is a notice of appeal to the Judge’s decision to approve the termination of the pilots’ pension plan. This short document preserves ALPA’s right to appeal the judge’s decision.
Item 2. The MEC’s grievance challenging the Company''s unilateral action to terminate the pilots'' pension plan is scheduled to be heard at its initial level tomorrow by US Airways Vice President of Flight Operations Captain Ed Bular. The arbitration process will begin if the grievance is denied at this level. A report on the grievance ruling will be announced when it becomes available.
Item 3. A hearing on the nation’s defined benefit pension plans and their funding rules was conducted today in front of the Senate Finance Committee. US Airways Captain Marc Schuler presented a witness statement to the Committee on the effect that a US Airways pilot pension plan termination would have on the pilot group. ALPA and US Airways also filed joint testimony for the hearing calling for a legislative solution to US Airways’ pension funding problem, which would permit restoration funding by amortizing the funding requirements over a period of 30 years. To achieve restoration funding, the joint testimony calls for the support of S. 119, as well as having it applied retroactively if necessary.
ALPA and US Airways’ joint testimony and Captain Schuler’s witness statement is available on the Legislative Affairs Committee page of the pilots only website.
Please remember we have 1,827 pilots on furlough.
Thank you for listening.
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