USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
Nobody likes the situation we are in and it plan and simply sucks for all of us. Every employee group faces outsourcing, reduced pay and benefits one way or another.
UsairwaysvoteNo posted an excellent summary of the bankruptcy process “Abrogating Contracts Q&A†(click here for topic) and Firstammendment posted a topic called “What Next†(click here for topic) discussing the grim reality we all face.
Both of these topics accurately portray the significant risk of entering bankruptcy with out a new agreement and that most people do not have a “Plan B†if US Airways fails again in the marketplace.
Separately, Spin Doc made a good point when he said, "US Airways cannot change the current airline economic environment and they are trying to do something to keep your sorry butt on the property with a paycheck every two weeks. Reduced pay and benefits versus NO pay or benefits."
Spin Doc's comments are true because we all know the reasons for revenue deterioration due to the LCC's, Internet booking, and Acela, not to mention the Iraqi War and SARS. Moreover, there are new cost problems associated with September 11, new security expenses, higher war risk insurance, and fuel prices.
In my opinion, each employee group should negotiate the best offer possible and then decide theirr fate on whether or not the agreement is acceptable or would would it be better to argue their case in front of the bankruptcy judge, provided the company files for a Chapter 11 reorganization or a Chapter 7 liquidation. We all know that if the company enters bankruptcy there is no guarantee the company can exit the filing, especially if DIP financing is required.
From ALPA's perspective, with the news the company has hired bankruptcy financial and legal advisors and the union preparing for the filing with Richard Seltzer, ALPA International's bankruptcy attorney, the union offered the company a pay rate cut larger than management suggested. The opening proposal included 12.5% paycut, those new pay scales frozen until Jan 2009, no snapback, and a 5 hour monthly pay cap increase from 85 to 90 hours.
I firmly believe it is better to have a job while looking for a new job and that it’s better to get laid off than to have the company shut its doors. We have been over the reasons why and most of our active readers understand these points so I will not repeat them here, but time is running short and there is just a couple of months left before things will likely become very interesting for labor.
Respectfully,
USA320Pilot
UsairwaysvoteNo posted an excellent summary of the bankruptcy process “Abrogating Contracts Q&A†(click here for topic) and Firstammendment posted a topic called “What Next†(click here for topic) discussing the grim reality we all face.
Both of these topics accurately portray the significant risk of entering bankruptcy with out a new agreement and that most people do not have a “Plan B†if US Airways fails again in the marketplace.
Separately, Spin Doc made a good point when he said, "US Airways cannot change the current airline economic environment and they are trying to do something to keep your sorry butt on the property with a paycheck every two weeks. Reduced pay and benefits versus NO pay or benefits."
Spin Doc's comments are true because we all know the reasons for revenue deterioration due to the LCC's, Internet booking, and Acela, not to mention the Iraqi War and SARS. Moreover, there are new cost problems associated with September 11, new security expenses, higher war risk insurance, and fuel prices.
In my opinion, each employee group should negotiate the best offer possible and then decide theirr fate on whether or not the agreement is acceptable or would would it be better to argue their case in front of the bankruptcy judge, provided the company files for a Chapter 11 reorganization or a Chapter 7 liquidation. We all know that if the company enters bankruptcy there is no guarantee the company can exit the filing, especially if DIP financing is required.
From ALPA's perspective, with the news the company has hired bankruptcy financial and legal advisors and the union preparing for the filing with Richard Seltzer, ALPA International's bankruptcy attorney, the union offered the company a pay rate cut larger than management suggested. The opening proposal included 12.5% paycut, those new pay scales frozen until Jan 2009, no snapback, and a 5 hour monthly pay cap increase from 85 to 90 hours.
I firmly believe it is better to have a job while looking for a new job and that it’s better to get laid off than to have the company shut its doors. We have been over the reasons why and most of our active readers understand these points so I will not repeat them here, but time is running short and there is just a couple of months left before things will likely become very interesting for labor.
Respectfully,
USA320Pilot