Cwa Us Airways Update 11-13-04

rescallgirl

Member
Jan 19, 2003
16
0
11-13-04
Management files to reject the contracts of passenger service, flight attendants, mechanics and ramp, and also files to terminate all pension plans – including our frozen passenger service defined benefit plan...
30 minutes before meeting to receive a CWA proposal on Friday, management notified us that they have filed in bankruptcy court to reject our passenger service contract in its entirety, along with those of the flight attendants, rampers and mechanics. They also notified us that they are seeking to terminate our long-frozen pension plan, along with the pension plans of the flight attendants and the mechanics.
In spite of all this, management claims they are earnestly and sincerely seeking to reach a fair agreement with us.
At the meeting Friday management could not explain how our frozen plan (which they now claim is $270 million underfunded) could have deteriorated when it was fully funded at the time it was frozen. They could also not explain why they have never mentioned this possibility before in all the meetings we have had about company restructuring and finances since April of this year. CWA will meet with actuaries for the plan to try to get to the bottom of that question.
We continue to present proposals to management to try to reach a fair settlement that agents and reps could vote for. At the same time, we have made it clear that we do not agree to management demands to eliminate res and contract the work out. We have made it clear that is a complete non-starter.
Management has said they will have a new proposal to give us when we meet again on Tuesday, November 16. We will keep you informed about those discussions.
How does our passenger service strike vote relate to the recent court filing?
Our strike authorization vote (86% in favor) was taken in anticipation of exactly the actions that management took on Friday – filing in bankruptcy court to reject our entire contract and impose any management conditions without a vote of the employees. If management continues to follow that strategy it is certain to lead to conflict in this airline.
CWA Local Officers and Staff
 
""At the meeting Friday management could not explain how our frozen plan (which they now claim is $270 million underfunded) could have deteriorated when it was fully funded at the time it was frozen. They could also not explain why they have never mentioned this possibility before in all the meetings we have had about company restructuring and finances since April of this year. CWA will meet with actuaries for the plan to try to get to the bottom of that question.""

Someone needs to go to jail.......... :angry:

Is it Dave .... or maybe our EX-CFO ..... someone need to spend some time behind bars! :ph34r:
 
US is shooting themselves in their own foot. They are losing the respect of the flyers with the way they treat their employees. People are reading the stories in the papers and reports on the news and dont understand why they would do this to the people that made this airline so strong. People fly us because they like our product, not for business plans and go fares. We have better service, better and cleaner equiptment. The longer this draws out , company looks bad each and every day to the consumer. If they want to go chapter 7, they are on a roll. US looks more and more like a big corp that wants to hurt the peole that makes them money.
 
This is pure speculation on my part, but I'm guessing that while terminating the frozen plan is sleazoid spite on the part of U, it will be found to be legal.

Now, no agent will ever approach the PBGC maximum payout. Where the concern lies is in the penalty formula for early retirement.

For example - you're a 45 year old with 20 years with the company. You know that you and U will soon part company. You had figured to tap that frozen account upon reaching age 55, accepted the penalty for early retirement.

Now, the frozen plan is terminated, and the PBGC assumes the plan. Can you still draw retirement at 55? I think, but don't know, that you can.

The bigger question is this. Will the PBGC penalize you at a higher rate than the original plan, so that withdrawal at 55 is now not feasible?

I have no doubt the company will spread FUD here, and it would be wise for someone authoritative with the CWA and IAM to have a word with the PBGC (both unions have office and staff in DC) and get the facts out.
 
If there is possibly something illegal going on, wouldn't the CWA lawyers be able to file some type of inquiry/injunction with the federal government for improper use of pension funds....Like the FSLIC, FDIC, or SEC Securities and Exchange Commission, etc ? Or, even the IRS Internal Revenue Service?

I believe monies that are accumulating interest/dividends have to be legally reported to the IRS...

The lawyers may want to ask for an inquiry by IRS if they know something is fishy...

Seems like $270.00 million dollars doesn't get up and walk away....Hey, didn't the CFO just split?...Mabey, he's in Mexico, Switzerland or Grand Cayman by now...
 
excellent points. I think the focus of this web site should be focused on unemployment, pension/PBGC, job opportunities, and training programs. To really discuss anything else under title does seem a bit nonsensical to me given the forecast of US AIRWAYS by "Top" people.
I mean, what does it really mean if USA320pilot or 700 is right about whether or not the IAM is going to 'feel the pain' or get self help, when the conclusion is academic?

The best thing is to make sure all are informed regarding the particular unemployment of each state and its retraining programs. Closure is starting to introduce itself.

regards,
 
God bless the agents for taking a REAL STAND.

I think what is happening to the agents is horribly egregious.

AFA is affiliated with CWA and we will NOT cross a picket line with our brothers and sisters if there is a "walk-out".
 
PITbull...thanx for your support!!!! It does now appear that the company has given me 270 million reasons to vote NO.
 
:down: this company got me for close to 80000.00 20 months ago
and now there f##king around with the frozen penison of 1992.
someone is going to jail.
 
Dio.....
Very good post! The Company says on the "HUB", we will soon have answers. The question is do we want to see the NEW info?

Sure is a downer!


Regards,
Father
 

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