N513AU:
N513AU said: Yes, if this imposed on us by a judge - there's gonna be labor unrest in a big way. No, it may not be a strike action - but productivity will suck and I'm certain there will be many more problems discovered on airplanes. Sadly, this will put our company in the grave - but remember, boys and girls - Dave did it to us by trying to play big boy with labor.
Chip comments: N513AU:
N513AU said: Yes, if this imposed on us by a judge - there's gonna be labor unrest in a big way. No, it may not be a strike action - but productivity will suck and I'm certain there will be many more problems discovered on airplanes. Sadly, this will put our company in the grave - but remember, boys and girls - Dave did it to us by trying to play big boy with labor.
Chip comments: The unions had months to come up with voluntary accords and meet the concession amount required by the ATSB, but for whatever reason did not do so. If either restructuring agreement is not ratified, the union will force Dave to seek to cancel the CBA because the credit facility and loan guarantee require the concessions.
If this occurs, the company will seek deeper cuts and the union and its members will risk having to pay damages, just like in the APA & AMR case.
Dave has no option but to have the court abrogate any union contract that has not been restructured because both the credit facility and loan guarantee require the concessions.
Do you agree that without IAM-M concessions the company will not be able to obtain second tranche of the DIP loan per the MOU? Furthermore, without all unions agreeing to the cuts the remaining portion of the DIP financing and the loan guarantee will be unavailable?
N513AU, nobody likes the cuts, nobody likes this situation, but the company is not the hammer. The cuts are required by those who are willing to loan the airline funds and without these funds the airline cannot survive.
Again, nobody wants this to get ugly and for the S.1113 hearing to proceed, but Dave is not the hammer, it's the lenders and the ATSB.
Chip