Lakefield Throws Down Gauntlet

[USA320Pilot]

Hawk:

That's a very interesting development. Is SLV an acronym for "sick leave"?

Respectfully,

USA320Pilot

 

[mweiss]

Regardless, it will be interesting watching this play out during the next couple of months.

It's far more interesting from where I sit than it would be if I had skin in the game. <_<

I feel sorry for those who don't have the luxury to sit on the sidelines for this one.

 

[linemech]

USFlyer:

I agree with your comments, but remember this: The CWA proposal was an opener and once the Board of Arbitration issues its Opinion & Award, watch the IAM change its position.

Respectfully,

USA320Pilot

USA320Pilot,

You call the CWA proposal an opener ?

U mangement has no intenions of negotiating with any labor group on this property and this so called opener is proof.

The proposals thrown on the table now, are only formalities being put in place before BK.

The only reason that management is still in discussions with the pilots is because they are easiest group on the property to bend over.

What qualifies you to determine what position the IAM should take on any matter, since you are not a member of the IAM.

You and your pilot group have been blowing your horn for a long time, telling us how the pilots are the leaders and the first to step up to help the airline in bad times.

Actually your group has proven that they don't step up to the plate to help anyone but themselves and the me, me, me, attitude they bring to the table ends up hurting all other labor groups.



linemech

 

[USA320Pilot]

I understand SLV is an acronym for "sick line value".

Respectfully,

USA320Pilot

 

[savyinvestor]

USFlyer:

I agree with your comments, but remember this: The CWA proposal was an opener and once the Board of Arbitration issues its Opinion & Award, watch the IAM change its position.

Respectfully,

USA320Pilot

An "OPENER" ? Thats an understatement if I ever saw one. No one in their right mind would ever agree to that or anything even remotely close to it. Its an insult at best and intimidation at worst. I haven't seen the arbitration decision yet. Is it out or are you using your unnamed sources again? You've got some nerve! :down: Savy

 

[funguy2]

GECAS/Bombardier/Embraer, the ATSB, and RSA are turning up the heat on labor. I firmly believe the company's proposal was an opener and the airline does not want to enter bankruptcy, but the company is prepared to do so, if necessary.

Bzzzzzt! Wrong!

GECAS/Bombardier/Embraer, the ATSB, and RSA are turning up the heat on MANAGEMENT... And management has no other solutions other than labor... Not one. If they did, I presume we would have seen it by now.

Last I checked, the employees did not ask GECAS for financing, nor did they order new airplanes, nor did they receive an ATSB loan... These are all management duties... The ATSB says that the company will meet certain criteria, it does not say that those criteria must be met by reducing employees (in number or salary). Assuming the company could grow and meet the criteria, the ATSB doesn't care, as long as the criteria are met... ditto for the others.

 

[oldiebutgoody]

Exactly!
That's why they really can't expect to prevail in court. Any trip to court will only be to liquidate, IMO. I think UAIR is far from having to do that!

 

[funguy2]

Exactly!
That's why they really can't expect to prevail in court. Any trip to court will only be to liquidate, IMO. I think UAIR is far from having to do that!

I disagree... UAIR does not have piles of money around...

Furthermore, once they run out of money, and fail to pay bills, the creditors can force BK... So in effect, the ATSB can force BK when/if UAIR defaults on the loan.

I would agree with your statement that UAIR is only going to BK to liquidate, though. They will initially go CH 11, but I don't think there is much that CH 7 can do for UAIR... Furthermore, I think UAIR is such a mess, that I cannot think of anyone willing to finance UAIR out ok BK... The only one I can think of is TPG, and they would need to have one hell of a plan to think they can do it. I mean, RSA and current management (and the Seigel era) did everything they could do to harvest the low-hanging cost-reductions. That means the next cost-reductions will be even harder to harvest... Like the Concessions Round 3 (and probably 4), fleet/route simplification, Express simplification, etc. To the extent that Lakefield and Co can get things implemented now, the chances of going through CH 11 improve, but really, the PIT hub should be closed by now... They've been working on it for two years already... Make a decision, implement, move on... The "Transformation Plan" should have started the day after the UAL merger died, or the day BK 1 was the set course of action, not when BK 2 was unavoidable.

 

[700UW]

USFlyer:

I agree with your comments, but remember this: The CWA proposal was an opener and once the Board of Arbitration issues its Opinion & Award, watch the IAM change its position.

Respectfully,

USA320Pilot

The IAM will not change its position as we are going to win the arbitration, care to make a wager on what Mr Bloch rules?

 

[Winglet]

When he pushes people up against the wall and they don't have much to lose, Lakefield shouldn't be surprised at what happens. He doesn't have time for "openers." I think this was the real deal. I hope he has his personal walk-away money in a safe account.

 

[oldiebutgoody]

I disagree... UAIR does not have piles of money around...

Furthermore, once they run out of money, and fail to pay bills, the creditors can force BK... So in effect, the ATSB can force BK when/if UAIR defaults on the loan.

Think about what you are saying! Why would the creditors, who stand to lose MOST if not ALL of their investment, force UAIR into chapter 7? Makes NO SENSE at all. They have got to see that a better business plan, possibly even a merger of some type, stands to get them out of this "jam", and if the industry improves (which it will, eventually, or MUCH MORE of the US economy will suffer), they could even make a buck (which is what it's all about). This BS about using loan covenants to beat the employees over the head again is ridiculous; if UAIR isthat close to the brink it's already gone. The key to airline profitability is ASSET UTILIZATION! Not continually "raping" the hired help.

 

[USA320Pilot]

The Transformation Plan requires labor support, principally in increased productivity, or the plan will fail.

The intent is to dramatically increase the utilization of front-line employees and aircraft to average down unit costs and increase revenue.

You cannot have one without the other and still have a meaningful effect on profits.

Respectfully,

USA320Pilot

 

[PITbull]

The company will purge the (SLV) and five-hour penalty for an interim period. This is a starting point to build a bridge to eliminate any cultural skepticism and extending the olive branch.

HAWK,

MANAGEMENT HAS TO INCLUDE THE RESERVES SICK IN THIS "FIX", OTHERWISE..

THIS IS NO OLIVE BRANCH....THIS IS A STICK-IN-THE-MUD.

Fix it across the board...

 

[ClueByFour]

I agree with your comments, but remember this: The CWA proposal was an opener and once the Board of Arbitration issues its Opinion & Award, watch the IAM change its position.

If they (IAM-M) win, maybe.

If they lose, the days are numbered before Chapter 11 and the subsequent shutdown and liquidation.

 

[Dog Wonder]

Lakefield is engaing in brinkmanship. Waiting for everyone, including the IAM, to fold. Some one, i.e. the IAM, won't. It is not interesting, but vital, to see what Plan B is.