Restructure With Or Without Labor?

[to much time to quit]

i believe if you know how the union represents...it will be the membersip who ultimately decides if the concession stand really is closed or not....not the grand lodge.....

Oh we know all to painfully how it really works. You are suffering from short term memory loss. Remember we voted NO, then were forced to revote the same pos contract because thousands of members emailed the grand lodge and dave saying they were confused!! :angry: :blink: I can see it now, the grand lodge and bruce receive 5,000 emails and phone calls from our 3,000 members begging to reopen our contract one last time for the team. B.S. Full pay and benefits until the last miserable day.

 

[700UW]

There were almost 7,000 at that time

 

[to much time to quit]

There were almost 7,000 at that time

So that made it right?? Yea and look how many are left and still leaving, strength in numbers?? :down: Besides 90% of the emails and calls came from the local lodges!!

 

[700UW]

So that made it right?? Yea and look how many are left and still leaving, strength in numbers?? :down: Besides 90% of the emails and calls came from the local lodges!!

I don't agree with the second vote, but I seriously doubt and lets see the proof about your statement where the e-mails and phone calls came from.

 

[unit4clt]

I hope i'm wrong, but I believe the IAM will do whats in the best interest of the IAM, much like the 2 previous agreements! :down: One thing is certian we soon will find out.

 

[gso2pit]

I generally agree with mweiss, oldiebutgoodie, Smartest Loser, and nycbusdriver.

But I think there is another problem with another Ch. 11 BK for US Airways management. That problem is that US Airways management potentially loses control of their airline. The BK judges is responsible to the creditors of the airline. His/Her responsibility is to maximize the payments to those creditors. If the BK judge feels that management's plan will not do that, he can remove management.

Take a look at what is happening in the current BK of Hawaiian Airlines. Hawaiian's CEO, a guy named Adams, took the airline to BK in a financing dispute with Boeing. He wanted lower leases. Boeing did not want to negotiate, and didn't have to because they had a contract. Adams took Hawaiian to BK in order to void the contract.

Well, the BK judge removed Adams, and the airline is currently being run by a BK-appointed trustee. That trustee, has managed a profit out of Hawaiian, and is shopping HA around to potential investors to emerge from BK. Adams, who has since teamed up with former AA CEO Don Carty, have submitted a Plan of Reorg to the court. However, so have several other potential investors, including Boeing and other former CEO's (notable, a guy named Bruce Nobles, I think).

Now, let's relate this back to US Airways... If US Airways goes to Ch. 11 again, the BK judge is required to maximize the what the creditors get from the situation. If the creditors are best served by a liquidation rather than a continuing operation, the BK judge can convert the case to Ch. 7. While this is rare, it does happen. The recent BK of Midway Airlines (the US Airways Express operator) is an example of where the CEO was still looking for investors, but when he repeatedly couldn't find any, the judge declared a Ch. 7 conversion. If such an event were to occur at US Airways, RSA would likely be at the top of the creditor list.

Just because RSA currently controls the airline, that is something that does not have to continue. It could be that a BK judge shops US Airways around as has been done with Hawaiian. In this case, RSA probably loses management control of the company. A BK judge may feel this is an appropriate course of action, since RSA has not materially changed the company's fortunes. Especially if someone like Bonderman/TPG are interested, and have a proven track record of airline turn-arounds (CAL and AWA).

Therefore, while an easy answer for management is to declare BK in order to invoke S.1113 BK/labor laws, which essentially force new negotiations, I think the probable result of those negotiations (more concessions, but probably not as much as management wants/needs) is not worth the risk (management/RSA loses control of the airline to the BK judge temporarily, and maybe to new investors permanently).

You are correct, sir. The sad fact is that if US goes into another BK and can't get the concessions which management says are needed, the judge will either chapter 7 it or the company will be sliced up and sold off. If the judge were to take management out, then he'd be working directly with Bronner, who he is ultimately responsible to. RSA hasn't done too much to change the financial fate of the airline and although a BK judge has been shopping around Hawiian, who would actually think that they'd do that with US? You're talking about a regional carrier and one of the top 10 major US airlines. Noone in the industry has enough cash right now to buy the company outright, and looking at the stock price, I can't see why anyone would want to come in(even TPG/Bonderman). Alot of ya'll have been saying full pay to the last day..well get ready folks, because it may be here soon...

 

[scorpion]

its the career positions in ramp,fleet,utility and other positions such as gse,plant maint ,stores and the like....that they could outsource for a lower cost.
how would they convince a BK juge mech wages are too high when they're lower than industry standard....maybe they'll get a raise in BK?
from what i understand U wanted this in the last round and IAM held them off.it may not go this round though.

Last spring the mechanics at AA took just under a 30% pay and benefit cut.
I have 17 years service with AA, make $30.65 an hour on second shift, 5 holidays a year, 3 weeks vacation a year, 5 sick days per year with the first two days called in paid at half pay. Double time was removed from our contract along with time and a half for holidays. The list goes on and on.

I'm curious what the mechanics at usair make with the same years service?

AA mechanic.