Throughout US Airways’ restructuring senior management and ALPA's advisors warned employees as time went on the management “ask†would increase. Why? The company’s finances would deteriorate due to passenger’s “booking away†from the airline, increased costs associated with the “judicial restructuringâ€, and now rising fuel costs. Nobody should be surprised by today’s company proposal to the IAM-M because the union refused to discuss the new business plan and mechanic and related participation.
ALPA’s advisors are batting 1000% and except for the 3 TWU units, the other unions will likely have contract cuts deeper than otherwise could have been obtained.
Even ALPA’s RC4 finally saw the light and directed the pilot Negotiating Committee to obtain a Tentative Agreement because the union believed court orderd changes could be even worse.
In my opinion, the union can do better than the proposal because the company would like to obtain consensual agreements. However, the only way to do this is to negotiate and stop the comments of the "concession stand is closed" while working for a business enterprise that has failed in an industry in meltdown.
If not, Judge Mitchell has shown he will “impose†a contract and there can be no changes made by the court during the next S.1113 hearing, the S.1113© "imposition" phase. Simply put the judge has one of two options: Either “impose†the last company or the last union proposal. In a recorded message to pilots on October 20, US Airways ALPA communication committee chairman Jack Stephen said, “In the 1113(e) process, the judge did have the power to make modifications to the Company’s emergency interim proposal. But, unlike the 1113(e) process, the law does not provide the judge with the authority to make any modifications in the 1113© process involving long-term, permanent relief.â€
See code-a-phone message
In my opinion, to limit union damage, every union without a new labor accord should negotiate a tentative agreement as soon as possible. Then if the terms are unreasonable, the effected employee can use their present job as a “bridge†to obtain new employment with more acceptable pay and benefits.
Why? Judge Mitchell has approved virtually every company motion in two “formal reorganizations†and in the face of rising fuel prices, labor has very little if any leverage in court, which has been proven in one S.1113 hearing. ALPA general counsel Mike Abams and ALPA bankruptcy counsel Richard Seltzer believe Judge Mitchell has great latitude and will likely strike the “self help†option and agree to the company’s outsourcing request if a “slowdown†occurs.
Do I like what is happening? No, of course not. The pay and benefit cuts run deep, however, I continue to believe for every employee it’s better to have a job than no job while in transition because you have higher pay, benefits, and insurance, instead of
just unemployment benefits.
Respectfully,
USA320Pilot