Merit Increases Return To Mgmt & Admin Employees

[MarkMyWords]

In all honesty.....I think everyone will see thier raises, and then see them taken away. I honestly don't think that anyone will hold on to any of their raises this year - management, unions, non-contract - no one. I would also hope that if that is the case, that the executive bonuses are also tied to profitability and paid only after profit sharing and employee incentives. Well.....I can dream can't I? LOL

 

[pitguy]

I can tell you the Mechanics raise was less than the insurance increase and resulted in less than zero. It was still another net pay decrease.

 

[BoeingBoy]

MarkMyWords,

I suspect you are probably right - depending on the timing of the raises in the individual union contracts. As for your dream, I think it's one we can all share.

Jim

 

[MarkMyWords]

I can tell you the Mechanics raise was less than the insurance increase and resulted in less than zero. It was still another net pay decrease.

I agree with you 100%. Any token raise will definitly be offset by the additional expenses we incur for our "benefits".

 

[funguy2]

I believe that this merit increase program will do nothing to stem the tide of attrition. The folks who are leaving CCY are rats jumping off a sinking ship.

Consider this. In the DC/NoVA area, an "analyst" who has some kind of MBA or other business degree is qualified to "analyze" for a multitude of organizations, and has some ability to move to another industry in the DCA area (i.e. government, dot-com, or something else), may be able to move to another airline (I hear the LCC's are hiring...) etc etc. Not only is it easy for these folks to move on, its preferable compared to waiting until there are a thousand former US Airways analysts competing with them in the NoVA employment marketplace. So if your an analyst at CCY, and not only do you see a lack of opportunity, but minimal raises and work overload (based on all of those positions of people who left before you and cannot get replaced), it becomes a relatively easy decision to leave, especially if the right offer comes along.

Compare that to the Mechanic or Pilot or Ramp agent who has 30 years invested (and starting at a new company means starting over) and a very narrow set of primary job skills. Its easy to see why labor gets squeezed and management doesn't.

While I understand why the merit increases are being implemented, the merit increases will only satisfy some of the people... Many will choose to leave for brighter prospects regardless of the increase.

This is a fairly common series of events at distressed companies. This problem could be solved with leadership (instill a "we will fight and win" mentality, for example), but I don't see it happening at this company.

 

[pitguy]

Business leadership 101 class tells you to make whatever cuts are necessary very quickly and precisely then rally and assure the remaining employees that all is well and then employ your new business plan. No where do they tell you to drag it on.........and on..........and on.....and on............


---This company needs a leader.

 

[PITbull]

"Fending off pre-emptive criticism, US Airways spokesman David Castelveter pointed out yesterday that many unions also had pay increases scheduled for 2004, and that the unions agreed to this year's management "merit" pay restoration during US Airways' bankruptcy proceedings in 2002."

This little paragraph is what caught my attention. So this should come as no surprise to any of the unions or their members.

Our return was a "snap-back" of 2% of jthe 9% given. Big, HUGE difference in freezing bonuses and merit raises that were nerver received.

Clearly, there is a difference between receiving monies not as a "give back" then moneis that were a "give back". Bonuse and merit increases were not given out, therefore no sacrifice.

 

[RowUnderDCA]

you mean the w2 give back was only 9%? or was that just one of the w2 concessions?

 

[MrAeroMan]

Our return was a "snap-back" of 2% of jthe 9% given. Big, HUGE difference in freezing bonuses and merit raises that were nerver received.

Clearly, there is a difference between receiving monies not as a "give back" then moneis that were a "give back". Bonuse and merit increases were not given out, therefore no sacrifice.

Members of management took paycuts too. Even with these merit increases they are in the same boat as you. They're making less than they did prior to the filing just as rank and file.

 

[Reservation Agent]

Reports of this has been all over the TV news, and local newspaper...

I think odds of more concessions are slim with the workers being asked to give concessions, and the company wants the money to give bonuses and pay increases to management...

FROM THE PITTSBURGH POST GAZETTE**************************
Pittsburgh, Pa. Monday, Feb. 23, 2004




US Airways' leaders in line for raises
Airline union says it's 'absurd'
Tuesday, March 09, 2004

By Dan Fitzpatrick, Pittsburgh Post-Gazette

US Airways Chief Executive Officer David Siegel and all airline managers will become eligible next month for as much as a 4 percent "merit" pay raise, the first such increase since 2001.

The pay increases, which will be awarded based on an employee's performance, come as US Airways is trying to cut expenses by $1.5 billion. The move has already rankled some unions.

"We do think it's absurd to be offering increases to management while US Airways is requiring additional sacrifices from union employees," said Joe Tiberi, spokesman for the International Association of Machinists and Aerospace Workers.

Everyone from the chief executive officer to nonunion office clerks will be eligible for the increases -- about 3,100 employees in all.

Fending off pre-emptive criticism, US Airways spokesman David Castelveter pointed out yesterday that many unions also had pay increases scheduled for 2004, and that the unions agreed to this year's management "merit" pay restoration during US Airways' bankruptcy proceedings in 2002.

Castelveter also said the company needed to reintroduce competitive pay to stem record turnover among managers, which now averages 9 percent per year. "The company cannot afford not to provide these increases," he said.

The restoration of merit pay does not address incentive bonuses, which were frozen for top corporate officers in 2002, nor does it reinstate the voluntary pay cuts taken by Siegel and his top officers that year.

Of the three major worker groups at US Airways, the machinists have been most opposed to further concessions. On Friday, the group staged protests in Pittsburgh and three other cities.

Still, the machinists union's leaders plan to sit down with US Airways executives Thursday to discuss their ideas for saving as much as $100 million in annual costs without resorting to concessions.

The flight attendants have been willing to listen to management's concerns, but they have yet to approve any talks about concessions. The pilots have been the most receptive to contract talks -- they travel to Arlington, Va., today to discuss what the company wants and what they expect, in return.



--------------------------------------------------------------------------------
(Dan Fitzpatrick can be reached at dfitzpatrick@post-gazette.com or 412-263-1752.)

 

[youngblood]

You could probably give some of these guys merit raises out the ying yang but they still wouldn't stay. Dave is not a leader and they know this. When most of the employees are screaming "concession stand is closed", these guys are looking over the edge and jumping with a "fair thee well" tattoed on their butts.

What I find intersting is that during bankruptcy Dave was given a thirty day window to jump ship himself with 4.5 million dollars in his pocket. What else? Was it three years of benefits? (Correct me if I'm wrong.) That window starts April 1. It will be interesting to see how this all plays out. I think Dave and Jerry were brought in as wrecking balls and the window was given for the purposes of having someone else come in to clear out the mess and rebuild. The only question is who?
I find that when Dave makes a statement usually the opposite is true. Wasn't he recently quoted as saying something along the lines of "I'm in this for the long haul." ?

I know one thing for sure - you can quote all the reasons for merit raises and this 30 day window with cash for Dave all you want. You can try to educate me in Business 101. I DON'T WANT TO HEAR IT!!!!!!!!!!!!!!! The facts are straight -forward and to the point. They're looking for more concessions while management is getting thousands in raises. They're asking for my 50 cents an hour I just received to compensate for inadequate management. THINK AGAIN!!!!!! They can shove it!!!!! Fly away to your house on the hill, run to the bathroom, and stick your head in the toilet because all that comes out of your mouth is crap and I'm not going to dirty my shoes anymore.

 

[MarkMyWords]

It will be interesting to see how this all plays out. I think Dave and Jerry were brought in as wrecking balls and the window was given for the purposes of having someone else come in to clear out the mess and rebuild. The only question is who?

This statement kind of clicked on a light bulb for me.....

Wasn't it Bronner that said that the next 90 days were critical for the survival of US in an article published in early Feb? That if he didn't get the concessions he needed to put us back in the black that they would have to look at other options.

Well, 90 days from the first of Feb is end of April. Youngblood, maybe you are right. Dave S and Jerry are the wrecking balls. Come in, beat up the employees, take everything you can get, then take your millions and leave. Then the new guy comes in like a white knight and saves the day!

Is the 90 days and the exit clause in Daves contract a coincidence or part of the bigger plan? 😛h34r:

 

[skyflyr69]

Any thoughts on Dave Siegel's e-mail to Management Salary Plan (MSP) and Administrative employees that merit increases are returning effective April, in spite of the cost-cutting environment?

Dave cited the bigger, long-term cost of dealing with the record employee turnover in these positions.

prudent move by jcmd i think.

 

[pitguy]

So management gets rewarded in good times and bad. I have no problem with clerks and non-union worker bees getting their due, but true management should sacrifice until the airline turns around. Right after the union slugs took hits here management got all their vacation and holidays back and managers and above received hefty bonuses. So much for shared sacrifice.

 

[Reservation Agent]

If so....Then ALL U employees should get a 4 % cost of living raise, also....