Cwa Update

tadjr

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Aug 19, 2002
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CWA President Morty Bahr meets with US Airways CEO Dave Siegel...
CWA President Morty Bahr, CWA's US Airways BOD member Magdalena Jacobsen, and CWA staff met with US Airways CEO Dave Siegel and Senior VP for Employee Relations Jerry Glass in Crystal City today.

The executives said they had requested the meeting to review the status of US Airways’ restructuring process and to alert CWA that management is undertaking a review of the company’s business plan and expects to make significant changes to the plan in order to better address various market realities. They said Southwest’s entry into the Philadelphia market was one catalyst for the review of the business plan.

The executives described that many of the trends benefiting JetBlue, Southwest and other carriers are proving to be structural and permanent rather than the normal, cyclical changes experienced in the past. They acknowledged that it is not realistic to try to achieve JetBlue-like costs, but they intend to come up with a competitive plan. They offered no particulars of the modified business plan – they say they are just beginning the process – but said they will review the new plan with the unions as it is evolved. They said they expect to have preliminary ideas on the new plan in mid-December.

CWA'ers raised several additional questions with the executives:

Merger: CWA'ers questioned whether recent public statements by CEO Dave Siegel about industry consolidation indicated that management is looking to sell or merge the airline. We asked specifically if there were any merger or sale discussions or approaches going on. The answer from the executives was an unequivocal “Noâ€.

MidAtlantic: CWA'ers described that there is a suspicion that something is wrong with MDA or that MDA plans have been sidetracked or changed. CWA reminded the executives that the pledge of MDA jobs for furloughed employees was the major component in the two concession agreements, and that we have yet to see any of those jobs. Executives said that MDA is definitely on track, and that roll-out may be delayed short-term (by up to two months), but there is no financial or technical impediment to MDA.

Airport Rage: CWA'ers asked that management join with the union in an effort against airport rage that would include two components: 1) jointly approaching airport authorities to publicize the federal airport rage law in their airports; and 2) jointly urging federal prosecution, rather than local prosecution, in cases where airport rage results in physical aggression or injury of an agent. Executives seemed open and receptive to the suggestion of a joint program and said they would respond early next week.

Employee Relations: CWA'ers told executives that US Airways management/employee relations at an all time low, and that CWA'ers believe there is an aggressively negative style of labor relations in the company at this time. Examples of management’s unilateral approach and unwillingness to compromise were cited. Management, for their part, stated that they feel the union(s) are too negative toward management. Executives stated that they intend to take prompt, definite steps to change the atmosphere and asked that the union participate in establishing more cooperative management/employee relations. We agreed.

Passenger Service Employee Survey: CWA'ers took advantage of the meeting to present the results of the Lauer Research passenger service employee poll to executives. We reviewed the results showing that agents and reps feel customer service has declined drastically, that there is understaffing, that 95% are opposed to further concessions, and that 49% of airport workers have experienced or seen an airport rage incident in the last six months. We said we think these employee opinions are significant and should be taken as input in the executives’ decisions and in discussions with the union. The executives listened, and said they would review the survey results.

Source: cwa.net 11/14/2003

What I find interesting is "They expect to have preliminary ideas on the new plan in mid-December. What have they been doing this whole time? (Thats a rhetorical question, I've seen what they've been doing myself).
 
Amazing...They lash out at the unions membership for being negative towards them.

These are the same people whom obtained almost a billion dollars plus in concessions from those same union members..then have had the verbage of their binding contracts manipulated at their whims...and we are the negative force here?

These are the same people whom have alienated themselves will almost every politician in the Commonwealth of Pennsylvania...and we are the negative force here?

These are the same people that said they could fix U with our concessions and the losses of 20,000 loyal employees...yet they may have a plan formulated in December?...and we are the negative force here?

The negative is home brewed on all accounts. We have given in real dollars...many have given with their very jobs...and we continue to give our absolute best efforts daily, all the while living with day to day prognostications of gloom or more possible labor peril with rumors of ICT'/UCT's flying about. Are we getting anything at all for our efforts that ise not laced with negativity from management?

I think Seigel and Crew needs to take a real hard look at what they are putting out Vibe-Wise , the negativity rolls from the top down...and they don't like it when it's rolling back their way. Boy , that is rich !! :rolleyes:
 
AOG,

You are always so poignant.

So, what does Chip have to say about NO merger????? Will Chip admit that management does deceive past, present, and perhaps future? Or is one of Chip's reliable Crystal Palace sources just lying to Chip? No, say it isn't so Joe.... :eek:


Thanks again CWA, for always informing your members and stating the facts.

So I ask, when do you all think round #3 will start? Before or after xmas? What do you think their "ace-in-the-hole" will be? Another BK threat, or better, liquidation? Both? Hell they might as well throw in the whole damn kitchen kaboodle this time....what the hey....
 
Three weeks ago I wrote that US Airways and United had changed their business philosophy because of rapidly changing fundamentals. The dramatic LCC new aircraft orders and expansion plans are forcing the business partners to reevaluate their positions. The CWA reported US Airways “management is undertaking a review of the company’s business plan and expects to make significant changes to the plan in order to better address various market realities.â€￾

In addition, I said that the companies could either be part of a holding company controlled by RSA or eventually merge.

However, before any deal can proceed each airline must stabilize itself and then evaluate the appropriate corporate combination. Separately there are senior officer reports that management believes “consolidation is inevitable.â€￾

As I have said before, reports indicate Bronner is agreeable to put the two companies together if US Airways stabilizes itself and United can overcome its bankruptcy obstacles.

In conclusion, the parties are talking privately about consolidation, but the final format has changed from the UCT because the business partners now recognize they need to create significant economies of scale to lower joint unit costs.

My questions are will it be an AF-KLM type of deal or a straight merger and who will be the surviving business entity.

In my opinion, the final deal will be RSA buys United and forms a holding company with US Airways. RSA then controls both US Airways and United. Nest the two companies incrementally integrate and in 4 years they totally merge. In regard to management, I believe the corporate headquarters would be located in Crystal City, the US Airways paint scheme and colors will be used for the corporate combination, and the name of the merged airline will be United.

Regards,

Chip
 
Dear Chip,

Man, you have got to check your sources. Geez, have you just given us a "view" from you from afar. USairways stabilize itself, and United overcomes BK obstables? I don't believe that is anything new.

I don't ever remember you posting any such thing of late. Or have you just reevaluted your UCT and now have entered a new epiphany?


Chip, you have got to lighten up already LOL.....caught ya.
 
US really needs to get a spokesperson to handle all the questions. I wonder if 'Bagdad Bob' is available? I feel he would fit in perfectly speaking for corporate management. Of course a person of his stature doesn't come cheap. Vice-President of Doubtful Truth title and a couple hundred thousand should do it. :rolleyes:
 
PitBull:

Check out my post with a date/time of Nov 7 2003, 04:54 AM at the following URL:

See comments posted last week

With the growing LCC threat, it appears Brooner is unwilling to provide United exit financing or pay to integrate the two companies, until he is certain both airlines can be a long-term survivor.

I believe it's no secret that both airlines need to cut costs further to be on-going viable business entities.

Regards,

Chip
 
Chip Munn said:
PitBull:

Check out my post with a date/time of Nov 7 2003, 04:54 AM at the following URL:

See comments posted last week

With the growing LCC threat, it appears Brooner is unwilling to provide United exit financing or pay to integrate the two companies, until he is certain both airlines can be a long-term survivor.

I believe it's no secret that both airlines need to cut costs further to be on-going viable business entities.

Regards,

Chip
Well Chip, what are you willing to give up this time to insure that U is a survivor in this situation?

You have been pretty generous with spouting off about the economy of maintenance outsourcing like that of the LCC's ...what else can you part with to even it up?...or have you already given at the office too? Refresh my recall please.

By the figures I've seen tossed about...it's as if our previous concessions were meaningless....with the same ones pushing the buttons , who's to say their math or actions are goig to get it this time or the next or the next?

What exactly does it take to rattle your faith in whats taking place here??? :blink:
 
AOG:

Before you start talking about wage and benefit cuts, lets look at a few things.

Pilot Pref Bid could result in about a 10% headcount reduction or about $50 million per year.

F/A headcount reduction will be similar, resulting in more saivngs.

US Airways has leverage on Pittsburgh and could shave about $25 million per year in savings.

As in SEA, continued facility integration with Untied will cut US Airways unit expense.

MDA will average down unit costs because its trip cost is lower and the new airlines results will be included in US Airways' consolidated statement.

Furloughed severance pay will moderate.

DB plan restoration will cost the company less than the DC Plan.

In regard to maintenance, I believe a no furlough clause in exchange for outsourcing the A320 heavy maintenance could work. The company would lower its overhaul expense and employees would stay employed.

These cost cuts are yet to be realized, but are in the pipeline.

Regards,

Chip
 
Well I guess anything is possible. After all, Nixon went to China.
But what do you get when you put a train wreck(US), together with with a bigger train wreck(UA). I shutter to think.
 
Hey Chip, can you hold back the excitement? Most of the things on that list- furloughs, poverty wages etc- are not good things.

:down:
 
Chip,

I don't believe advising the mechanics to get a "no furlough" clause in exchange to permit the co. the ability to outsource is sound advice, infact, its the worst negotiating scenerio ever. The IAM obviously have full proof clear obvious proven languge to protect their work. Why mess that up? Mechanics truly want this work because it belongs in house where it can safely be done.

Flight attendants had the so called famous "no furlough" language for the past 10 years, and it was "snatched" from us and was the deal-breaker last summer 2002 BEFORE we even went into BK.

No sir, no way to give up that language for all the money in China.
 
Review of the Business plan???? What business plan do we now have in place???
That is a good one, maybe they mean that they now realize that we need one in a hurry. Our current plan of wage cuts, station closings, loss of marketshare and sending RJ's accross the pond is not working. Remember when the RJ's were going to replace the aging props??? Instead they have replaced as much mainline flying as possible. If they are doing around the system what they have done in our station, it is no wonder we are sinking faster than the Titanic. Last years threat of Liquidation for the Holidays is going to be tough to beat, but you never know. Maybe every station on the system will become Mainline Express..... :huh:
 
Hey everybody, maybe Chip is right!!! RSA will bail out UAL and then merge them with U. Only my scenario is a bit different! Since U is soon to be nothing more that a large commuter airline and UAL is still a real airline, they will be run a seperate companies. RSA will transfer the large A/C to UAL and we will receive more RJ's!!! I think this transfer of equipment happened before a.k.a. Lorenzo. Chip will now be flying left seat of maybe CRJ 170 vs a 321 at about 1/3 the pay!!! U employees will be working for the new UAL commuter. I see the only people making out on this deal is Dave and his band of thieves and liars!!! :p
 

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