Bronner Tells Usa Today Bankruptcy Could Occur

[usfliboi]

I think any US employees should be nervous when a group keeps chanting the way IAM is chanting. In fact you should be more nervous.... Its not resposible nor is it lodgical that iam wont hold talks knowing the end result.... What good is the iam without any employees to represent? If this company goes , where will iam get the money to support itself? No my friend iam will talk inside or outside of bk, mark my words, youll be callin (yet again) for a new union sooner or later!

 

[cavalier]

I think any US employees should be nervous when a group keeps chanting the way IAM is chanting. In fact you should be more nervous.... Its not resposible nor is it lodgical that iam wont hold talks knowing the end result.... What good is the iam without any employees to represent? If this company goes , where will iam get the money to support itself? No my friend iam will talk inside or outside of bk, mark my words, youll be callin (yet again) for a new union sooner or later!

[post="167801"][/post]​

Let me explain this to you real S_L_O_W:

The IAM does NOT need U to exist.

And why would you care, you're not even an employee but a perpetual student of wisdom.

 

[USA320Pilot]

The IAM like every other airline union is nearly broke and is having a difficult time funding itself in today's environment. Moreover, the IAM is scared to death of AMFA, which is driving their rhetoric.

If the IAM loses US Airways mechanic representation, either due to a business enterprise failure, S.1113 imposition, or representation change, the union would represent no major airline mechanics.

Yes, there is more to the story and I know for fact the IAM is now changing their tune on negotiations. A lot of what happens will be determined by the A320 arbitration opinion and award.

Respectfully,

USA320Pilot

 

[Hope777]

Well lets look at the other side of the coin concerning the IAM.

If the IAM FAILS it Members at USAirways, how do you think possible Organizing Targets will view the IAM? Not very strong, so expect the Union to Stand Strong because Their Future depends on it.

 

[colorado_cowboy]

This best not be true. The membership will not react well to that!

[post="167791"][/post]​

IMO the membership *might* vote yes on a restructuring plan.
Think about it, if the stock clerks and cleaners and a large portion of the mechanics clearly see that their job is gone no matter what but can get their severance by voting yes to the company's proposal what do you think their going to do?

Theres some that might say to hell with it and take their chances and let a judge decide but again in my opinion most would rather have their severance and move on with their lives.

 

[delldude]

The IAM like every other airline union is nearly broke and is having a difficult time funding itself in today's environment. Moreover, the IAM is scared to death of AMFA, which is driving their rhetoric.

i see you don't know much about the IAM there fella.....they represent one heck of a lot of jobs other than just airlines bub.

1. What is the IAM? : The International Association of Machinists and Aerospace Workers (IAM) is a union of more than 400,000 active members employed in 200 basic industries in the United States and Canada.

 

[Hope777]

From the IAM National Web-Site.....


The IAM is a large and diverse organization, representing 730,000 members across North America. Each member makes a significant contribution to the success of the union. The mission of the IAM Headquarters is to help individual members realize that potential. The departments of the IAM mirror the diversity of the members that form the union.

 

[funguy2]

IMO the membership *might* vote yes on a restructuring plan.
Think about it, if the stock clerks and cleaners and a large portion of the mechanics clearly see that their job is gone no matter what but can get their severance by voting yes to the company's proposal what do you think their going to do?

Theres some that might say to hell with it and take their chances and let a judge decide but again in my opinion most would rather have their severance and move on with their lives.

[post="167847"][/post]​

If the company goes to Ch.7, there will be no severence. The company will shut-down overnight and the employees will get screwed, and likely have to go to BK court to get their final paychecks... Its happened before, don't be so naive.

On another note, it is not often that I agree with USA320Pilot, but I had a thought this morning that coincides with USA320Pilot's "information".

If you recall, when US Airways pre-payed the ATSB-guaranteed load the first time, the announcement was made on March 12. If you recall, it was the end-of-quarter loan covenants that were to be busted on March 31. And yet they did the deed 2 weeks earlier...

So, if management is certain by mid Sept that they will fail to meet the end-of-quarter covenants (i.e. end of Sept), it may be possible to take care of that prior to Sept 30th.

Quite frankly, I am surprised I did not think about this before now... USA320Pilot may be right on this one (even if he is parroting someone else's rhetoric)... we'll have to wait and see...

 

[Hope777]

No matter what happens, I just hope my fellow employees have their house in order. I just can not see people voting away their jobs to svae someone else. The ONLY chance the company has with the IAM, is if the IAM wins the Heavy Ruling, other wise expect the IAM to PLAY HARDBALL as the members want.

 

[to much time to quit]

No matter what happens, I just hope my fellow employees have their house in order. I just can not see people voting away their jobs to svae someone else. The ONLY chance the company has with the IAM, is if the IAM wins the Heavy Ruling, other wise expect the IAM to PLAY HARDBALL as the members want.

[post="167905"][/post]​

Regardless of the airbus arbitration outcome the mechanic and related group is not interested in reopening our contract. And the percentage of members with these exact feelings are much higher than any of the naysayers want to believe. If the company is still around in 2008, our contract is amendable 12-31-08.

 

[sfb]

On another note, it is not often that I agree with USA320Pilot, but I had a thought this morning that coincides with USA320Pilot's "information".

If you recall, when US Airways pre-payed the ATSB-guaranteed load the first time, the announcement was made on March 12. If you recall, it was the end-of-quarter loan covenants that were to be busted on March 31. And yet they did the deed 2 weeks earlier...

So, if management is certain by mid Sept that they will fail to meet the end-of-quarter covenants (i.e. end of Sept), it may be possible to take care of that prior to Sept 30th.

Quite frankly, I am surprised I did not think about this before now... USA320Pilot may be right on this one (even if he is parroting someone else's rhetoric)... we'll have to wait and see...

[post="167891"][/post]​

In this particular instance, you are incorrect. The pre-payment of part of the ATSB-backed loan was made because the company already would have been in violation of one of the loan covenants on March 12 -- but not the one you're thinking of. UAIR filed its 10-K for 2003 on March 12, and the auditor's report therein contained the following statement: "[T]he company's significant recurring losses and other matters regarding, among other things, the company's ability to maintain compliance with covenants contained in various financing agreements, as well as its ability to finance and operate regional jet aircraft and reduce its operating costs in order to successfully compete with low-cost airlines, raises substantial doubt about its ability to continue as a going concern." This particular statement by the auditor would have placed US Airways in violation of its loan guarantee covenants -- necessitating amendments to the loan guarantee at that point.

The September 12 date is theoretically important solely because the company has a large contribution to make to its pension funds that is due by September 15, and they probably feel that filing on a Sunday is beneficial since fewer people are paying attention to the news on the weekend (so, less bad press). I haven't read through the loan guarantee to see the specifics, but it's not clear to me at which point the company might be in violation of the covenants for the first three quarters -- as of September 30 or when the 04Q3 10-Q filing is made.

As others have said, it appears to me that a bankruptcy filing (if the ATSB & creditors are on-board) seems to be inevitable at this point, given what appear to be unacceptable demands made by management of most of the workgroups. While I think the pilots are likely to give in (simply because they're not likely to do better anywhere else), prospects seem to be poorer among the other groups. And I suspect that the company's plan to more-or-less eliminate most of its mechanics in the Transformation Plan makes their proposal to the IAM DOA -- and if the bankruptcy judge were to cancel that contract, the probability of self-help is extremely high. My guess is that the company believe that they'll be able to get enough mechanics to cross the line to keep flying, or that they'll be able to outsource it somehow, but I suspect that they're wrong. And US can't afford to take a strike.

 

[cavalier]

IMO the membership *might* vote yes on a restructuring plan.
Think about it, if the stock clerks and cleaners and a large portion of the mechanics clearly see that their job is gone no matter what but can get their severance by voting yes to the company's proposal what do you think their going to do?

Theres some that might say to hell with it and take their chances and let a judge decide but again in my opinion most would rather have their severance and move on with their lives.

[post="167847"][/post]​

Not everyone cares about the severance which is NOT a sure thing regardless.

Severance is nothing, when looked at from a lifelong timeline.

If they did, explain why employees are leaving in droves for a sure thing versus this mess?

 

[BoeingBoy]

sfb,

You are correct that the company was already in violation of the loan covenant on March 12, though I suspect that they knew then that the financial preformance covents that were to kick in on June 30 would be a problem. After all, the talk of revenue shortfalls started in late 2003.

As to the next BK filing, it is interesting that at least one ALPA advisor believes that the ATSB will be reluctant to go along with another filing unless at least the concession part of the Transformation Plan is in place.

I agree that the ALPA negotiating committee will probably reach an agreement with the company soon. Whether there will be time for a ratification vote (after "roadshows" to present it to the rank & file) and what the results of that vote might be are, of course, unknown at this time.

Jim

 

[USA320Pilot]

You guys are missing the point of why there could be a mid-September bankruptcy filing.

Respectfully,

USA320pilot

 

[colorado_cowboy]

Not everyone cares about the severance which is NOT a sure thing regardless.
Severance is nothing, when looked at from a lifelong timeline.
If they did, explain why employees are leaving in droves for a sure thing versus this mess?

[post="167937"][/post]​

Cav,

People are leaving in droves because they have the option to do so. I wouldn't imagine their quitting just because their tired of the crap we go thru on a daily basis without having another job lined up.

Im personally doing everything possible to get out of this hell hole but unfortunately just up and quitting without getting another source of income first isn't an option. Right now I have 2 different companies doing background checks on me and the minute I get the call that I have a start date from either company Im outta here.

Here on the west coast theres still some people who believe that U filing BK again isn't going to effect them that much other than it might cost them a couple of bucks an hour in wages. The people Im speaking of are cleaners and we both know what the company's plans are for that classification.