Bruce Had A Bad Day

[WestCoastGuy]

If all labor groups agree to a new contract EXCEPT the IAM, how could the company justify continuing business as usual, with that group the only ones that didnt take cuts? Would that push the company into BK just to void their contract? Where would that leave us again? Could the IAM jobs ALL be contracted out??????? It seems to be a case of damned if we do and damned if we don't.

 

[AgentOrange]

Man, you guys are bad. Short sellers had fund making money off U (mgmt and labor).

Let me get this straight:
Original management stunk; they were greedy (Wolf and Gangwal).
OK, get rid of them, and bring in Siegel.
Siegel gets some cuts but does not forecast rising fuel costs and a lack of recovery in RASM.
So he stinks, get rid of him, bring in Lakefield.
Lakefield asks for the cuts that Siegel was nice enough (willing enough to risk) not to ask for, and you say he stinks.



Do you think many of the independent observers who are watching all of this- government, media, Wall St. analysts, potential financing providers- support the contention that each successive mgmt. team stinks and labor has a right to feel burned? What would have happened if Siegel asked for the cuts he needed to? How much would you have hated him anyway?

So hate Lakefield; you're going to hate anyone in that position anyway.

Looks to me that most of them say the only way out is to get deep cuts in pay from labor again, whether that means wages or retirement benefits. I don't see alternate ideas, from observers or labor. All I see from labor is complaining about management's competence, which doesn't help create a solution at all. In theory, if labor gets what it wants and gets a new management team, the eventual happening is labor starts complaining again about new management's lack of ability.

Fact is, unless US Airways has extremely bad luck, it is not that each management team is bad, it is that labor does not fess up to the reality that if they are stuck in a situation where they are working for a hub-and-spoke carrier centered in the weather-volatile East in smaller cities without substantial O&D traffic and have accumulated major retirement liablities, they are going to have to be paid less because the entity does not generate sufficient profit to pay legacy wages. IF anything, it may be the base union's fault that they are all structured so that departing members go to the bottom rung if they switch airlines.

Complaining about management's wages- Fact is airline management labor is a free agent market. To attract the good management you as labor so often demand, market wages must be paid. This market is different from the ones set by union/management negotiations for line workers. It is the American economy as set by the market; the market is different in Europe where executives do not make as high a multiple of line worker wages as in the U.S. However, you do not live in Europe nor have any control over our economic system. You can either move to Europe or try to get into management. Blaming management for the idiosyncracies of our economic system is counterproductive because it has no upside and potential downside of straining management/labor relationship, which may result in you folks getting what you deserve- the bankruptcy court setting your wages.

 

[OldGuyinPA]

Agent Orange...

Bad luck...you've got to be kidding. The Crystal Place is it's own worst enemy. It's just a matter of TIME.


It's always been about the attitude and arrogance....It's been evident since the late 80's.....



BYCU

 

[StewGuy86]

Understand that most of us still here have worked very hard to make US Airways survive. Quit blaming the employees for the failures of management.

[post="168677"][/post]​

Dea,

Excellent post. I couldn't have said it better myself. Thanks.

 

[olivia]

Unfortunately, I think Lakefield and Bronner are not that bad...it is just
that since 1995 we have been in the hands of an "Enron" situation where
the management was greedy and inept. I believe Wolf and Gangwal
belong in jail somewhere!

So sad as it is...Lakefield has inherited a situation that is nearly impossible to fix.

Certainly it is not the employees fault that we are losing so much money.

If more changes had been made back in 1995 and onward, the changes would not be so painful now.

It is sad because we all wanted a company we could be proud of and some
flight benefits for our retirement.

 

[EyeInTheSky]

The closing comments of the WP articles speaks volumes:

"This is an employer coming into a situation where workers have been burned over and over again," Bronfenbrenner said. "They have good reason to be leery, to tread carefully and to make sure they don't agree to give concessions. For all they know, the problems are being exaggerated in part."

 

[Phoenix]

Man, you guys are bad. Short sellers had fund making money off U (mgmt and labor).

Let me get this straight:
Original management ....


Do you think many of the independent observers who are watching all of this- government, media, Wall St. analysts, potential financing providers- support the contention that each successive mgmt. team stinks and labor has a right to feel burned? ...

[post="168777"][/post]​

Blah, blah, blah.

I couldn't care less what you think. It is called a contract. Your opinion does not effect the terms.

If you want to buy a ticket for air carrier service feel free to engage in your own little contract. You will receive the best service in the industry from the employees at U.

Welcome aboard... or not. I don't care about you untill you have a ticket. It is mgts job to care if you have a ticket. It is the employees job to make you want to buy another one once you are on board.

Employees who are trying to convince anyone else of anything else are just chasing wind.

 

[USA320Pilot]

This week those parties interested in the success of US Airways received a stark report issued by Michael Glanzer, ALPA’s investment banker and financial advisor, of the risks of not having labor participate in the company’s new business plan that Glanzer said was “thoughtfulâ€.

If labor does not obtain and ratify tentative agreements, bankruptcy is assured where the labor “pain†will be more severe for any union who does not participate in the new business plan.

In his executive summary Glanzer said:

"Based upon the financial analysis and our extensive experience in restructuring, the pilots’ have choices are as follows:

(i) Negotiate a deal with a low cost carrier cost structure and obtain various returns as part of that package.

(ii) Elect not to reach an agreement with the Company and be prepared to accept liquidation or, less likely, the imposition of contractual terms that will be more sever than those proposed (text omitted) with the Company in a gravely (and potentially fatally) weakened positions and forgo the prospect of obtaining any significant returns."

The marketplace has sent us a message, which is not the employees or company’s fault: either we change or die.

For those of us are angry and would rather see the company “burn to the groundâ€, instead of accepting an America West type of contracts, I believe former chief executive officer Dave Siegel made a valid point during his webcast. Siegel went so far as to encourage employees to leave the company if new work contracts aren't agreeable, rather than to fight the change. "If it doesn't work, I'd encourage you to support the change, and then go on and find something else," he said. "It's better to have a job when you're trying to find another job."

While employed a person has pay, benefits, more retirement contributions, and pass privileges. Even if an employee is laid off they’re better off agreeing to the new accord because they will get severance pay, COBRA, pass privileges, J4J (if desired/available), recall rights

From this observer’s perch, Siegel’s comments in the paragraph above are valid. It’s better to have a job while you are seeking another job than to have just unemployment.

Respectfully,

USA320Pilot

 

[OldGuyinPA]

Respectfully...

You may choose to work for free...We choose not to...

Respectfully...

 

[USA320Pilot]

WestCoastGuy:

WestCoasstGuy said: “If all labor groups agree to a new contract EXCEPT the IAM, how could the company justify continuing business as usual, with that group the only ones that didnt take cuts? Would that push the company into BK just to void their contract? Where would that leave us again? Could the IAM jobs ALL be contracted out??????? It seems to be a case of damned if we do and damned if we don't.â€￾

USA320Pilot comments: In his weekly message to employees Bruce Lakefield left little doubt that the airline and its unions remain far apart. The IAM will not meet with the company until August 31, he said.

It is anticipated that ALPA will obtain a TA this week and then the pace of negotiations will pick up with the other unions. It appears that part of the IAM’s strategy is to wait for the Board of Arbitration Opinion & Award to be released on the A320 heavy maintenance-outsourcing grievance. If the Company wins the award and does not obtain a cost-effective contract with the IAM, once the airline has a competitive cost structure, the airline could return to the capital markets and replace all of the Boeing aircraft with Airbus and EMB-190/195 jets.

US Airways’ Boeing fleet consists of 158 aircraft, which could be replaced in about 3 years with A330, A321, A320 and EMB-190/195 aircraft, which could eliminate virtually the entire Maintenance Department. US Airways’ current Boeing fleet consists of:

B767s- 10
B757s - 31
B737-400s - 47
B737-300s - 70

There is uncertainty surrounding the company in bankruptcy, but from the company’s perspective this may be a way to make the IAM irrelevant and is a clear risk to its membership, without a new collective bargaining agreement.

Respectfully,

USA320Pilot

 

[lpbrian]

The "entire" maintenance department? Wow, I wonder what kind airline this would be: Airbii and Embraerer's that fix themselves!!!

 

[lpbrian]

US Airways’ Boeing fleet consists of 158 aircraft, which could be replaced in about 3 years with A330, A321, A320 and EMB-190/195 aircraft,

Yeah, If US had the money?

 

[USA320Pilot]

Lpbrian:

Lpbrian said: “The "entire" maintenance department? Wow, I wonder what kind airline this would be: Airbii and Embraerer's that fix themselves!!!â€￾

USA320Pilot comments: I never said the "entire" maintenance department. I said the company “could eliminate virtually the entire Maintenance Department.â€￾ Why? With a grievance victory and no new IAM CBA, the company would only have to provide the mechanics work for A330 heavy maintenance, line maintenance, and associated work. With the present fleet plan of 279 aircraft (all things being considered), the heavy maintenance of 158 of 167 aircraft could be eliminated by having an all Airbus and EMB fleet, which would eliminate 95% of the current heavy maintenance with virtually all heavy maintenance outsourced.

From the company's perspective, there could be more than one way to skin a cat. Do I like this? No, but the IAM may provide the company no alternative if the union elects to not participate in the new business plan in a meaningful way.

Respectfully,

USA320Pilot

 

[lpbrian]

A Line maintenance dept. is a sizable operation, almost equal to a heavy maint. dept.

 

[USA320Pilot]

Lpbrian:

USA320Pilot said: "US Airways’ Boeing fleet consists of 158 aircraft, which could be replaced in about 3 years with A330, A321, A320 and EMB-190/195 aircraft."

Lpbrian said: Yeah, If US had the money?

USA320Pilot comments: Bruce Lakefield told the ALPA MEC on June 17 that he was meeting with Airbus' senior vice president of North American Sales about 2005 Airbus delivery's for US Airways in 2005 and beyond. Lakefield indicated that Airbus wants to help US Airways restrcuture.

As I said in a previous post, "once the airline has a competitive cost structure, the airline could return to the capital markets and replace all of the Boeing aircraft with Airbus and EMB-190/195 jets."

US Airways Group is currently financing about 6 new aircraft delivery's per month from two different manufacturers and with a competitive cost structure after this restructuring is complete, the company will continue to be able to finance new aircraft, provided it remains a on-going business enterprise.

Respectfully,

USA320Pilot