I'm not a known for being a hard-core union supporter and I think US does need to improve its labor productivity, but even I have to admit something here STINKS. [BR][BR]US locks hundreds of mechs out of a job in TPA with NO warning and then turns around and asks for concessions from the rest?? That's plain terrible and really raises some questions about the people running this company. [BR][BR]
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The Company''s new IAM concession wish list.
- Thread starter repeet
- Start date
mrplanes, I have 14 years with this company, I come to work and do my job to the best of my abilities, the employees can only take so much, we have given back since I can remember.[BR][BR]The company threw us a last and final offer if they wanted more they should have asked us then. I have seen thousands of my coworkers hit the streets, have to downgrade to lower paying classifications and management has not been touched.[BR][BR]I just gave back $700 a month, work rule changes, increase copay for benefits, pay for uniforms, extra 30 minutes work day and numerous other things. NOT ONE AIRLINE HAS BEEN SAVED FROM GOING OUT OF BUSINESS WHEN THE EMPLOYEES HAVE GIVEN BACK, Pan Am, Eastern, Braniff, do I have to name anymore?[BR][BR]If we give them their wish list it would cause thousands in my department to be laid off, the company informed us that is all they needed the first time, shame on them if they have an inept management structure who could not forsee trouble ahead.[BR][BR]How is going into a hangar at 4:00AM in the morning two days before Thanksgiving and tell the workers, here is your paperwork, you have three days to turn it back in, take your belongings and turn in your IDs we are shutting you down, being labor friendly as Dave and his band of cronies continually state? Plus the company has violated the WARN Act.[BR][BR]Unless you are an employee and have been thru the things that myself and my coworkers have been thru, you have no right to judge. You do not know me, nor anything about me, it show your lack ot maturity and charectar when you try to insult and bash someone who has finally had enough and stand up for themselves.[BR][BR]FROM OUR CONCESSIONARY CONTRACT:[BR][BR][BR]
[P align=center]US Airways Group, Inc.[BR]US Airways, Inc.[BR]2345 Crystal Drive[BR]Arlington, VA 22227[BR]
[P align=center][BR][BR]Scotty Ford[BR]President and General Chairman[BR]International Association of Machinists[BR]and Aerospace Workers – District 141M[BR]321 Allerton Avenue[BR]South San Francisco, CA 94080[BR][BR]Re: Restructuring Program[BR][BR]Dear Mr. Ford:[BR]
[P align=justify]The modifications to the 1995 Mechanical and Related Agreement (the Modifications) reached in connection with the 2002 Restructuring Program of the US Airways Group, Inc. and US Airways, Inc. (together, the Company) were agreed to by IAM in furtherance of the Company’s effort to successfully restructure its operations and capital structure and in consideration of the Company’s waiver and agreements herein. The Modifications were embodied in the revised collective bargaining agreement between IAM and the Company described as the IAM Restructuring Agreement.[BR]
[P align=justify][BR]
[P align=justify]This Letter of Agreement is a part of the Modifications and the IAM Restructuring Agreement, and is effective only if and when the IAM Restructuring Agreement becomes completely and unconditionally effective, and there are no conditions subsequent to its continuing effectiveness.[BR]
[P align=justify][BR]
[P align=justify]The Company believes that:[BR]
[P align=justify][BR]
[UL][BR]
[LI]The Modifications are based on the most complete and reliable information available to the Company; [/LI][/UL][BR]
[P align=justify][BR]
[UL][BR]
[LI]The Modifications permit the Company to avoid irreparable harm and provide for all the appropriate modifications to the 1995 Mechanical and Related Agreement that are necessary to permit the successful restructuring and reorganization of the Company. [BR]
[LI]The balance of equities favors the IAM Restructuring Agreement and the Company’s adherence thereto. [/LI][/UL][BR]
[P align=justify][BR][BR]The Company agrees that if a petition for bankruptcy is filed with respect to either US Airways Group, Inc. or US Airways, Inc., during the calendar year 2002 (the Filing):[BR]
[P align=justify][BR]
[OL][BR]
[LI]Neither the Company nor any affiliate will file or support any motion pursuant to 11 U.S.C. Sections 1113, 1113 (e), 1114, 1114 (h) or any other provision of the Bankruptcy Code, seeking rejection or modification of, or relief or interim relief from, the IAM Restructuring Agreement.(a Motion). [BR]
[P align=justify][BR][/P]
[LI]The Company and its affiliates will actively oppose any such Motion if filed by another party. [BR]
[LI]It is expressly recognized and agreed that if the IAM Restructuring Agreement is not completely and unconditionally effective, and the 1995 Mechanical and Related Agreement therefore remains effective without the Modifications, the above two paragraphs are inapplicable and have no force or effect, and the Company may make or refrain from opposing any such Motion with regard to the 1995 Mechanical and Related Agreement. [/LI][/OL][BR]
[P align=justify][BR][BR][BR][BR]In the event that the Company files a petition for bankruptcy and US Airways determines to request additional modifications to the IAM Restructuring Agreement to support reduced cash flows, to secure debtor-in-possession financing, and/or attract capital, the Company and IAM will meet to negotiate regarding such additional modifications to the mutual satisfaction of both parties within fifteen days of such determination. Neither party will be required to reach agreement regarding such modifications and the failure to reach such agreement will not affect the commitments in this letter.[BR][BR]Please indicate your agreement to the foregoing by signing below.[BR][BR][BR][BR]August 11, 2002[BR][BR]Scotty Ford[BR]President and General Chairman[BR]International Association of Machinists[BR]and Aerospace Workers – District 141M[BR]321 Allerton Avenue[BR]South San Francisco, CA 94080[BR][BR]Re: The Company’s Restructuring Proposal[BR][BR]Dear Mr. Ford:[BR]
[P align=justify]I write to confirm the additional commitments of US Airways Group, Inc. and US Airways, Inc. (the Company) with respect to the modifications (the Modifications) to the 1995 IAM-US Airways Mechanical and Related collective bargaining agreement (the 1995 Mechanic Agreement), such Modifications as applied to the 1995 Mechanic Agreement being defined as the IAM Restructuring Agreement.[BR]
[P align=justify][BR]
[P align=justify]The Company is prepared to make certain commitments if the following three conditions occur:[BR]
[P align=justify][BR]
[BLOCKQUOTE][BR]
[BLOCKQUOTE][BR]
[BLOCKQUOTE][BR]
[BLOCKQUOTE]1. The IAM submits the Company’s proposal for restructuring for membership ratification no later than August 11, 2002; and[/BLOCKQUOTE][/BLOCKQUOTE][/BLOCKQUOTE][/BLOCKQUOTE][BR]
[P align=justify][BR]
[DIR][BR]
[DIR][BR]
[DIR][BR]
[DIR][BR]
[P align=justify]2. The membership ratification vote is counted no later than August 29, 2002; but[BR]
[P align=justify][BR]
[P align=justify]3. The Company enters bankruptcy prior to the count on the membership ratification vote.[BR]
[P align=justify][/P][/DIR][/DIR][/DIR][/DIR][BR]
[BLOCKQUOTE][BR]
[P align=justify]If the three above conditions occur, then the Company’s commitments through 5:00 p.m. on August 29, 2002 are as follows:[/P][/BLOCKQUOTE][BR]
[P align=justify][BR]
[BLOCKQUOTE][BR]
[BLOCKQUOTE]1. Neither the Company nor any affiliate will file or support any motion pursuant to 11 U.S.C. Sections 1113, 1113 (e), 1114, 1114 (h) or any other provision of the Bankruptcy Code, seeking rejection or modification of, or relief or interim relief from, the 1995 Mechanic Agreement or the IAM Restructuring Agreement for hearing prior to August 30, 2002. [/BLOCKQUOTE][/BLOCKQUOTE][BR]
[P align=justify][BR]
[BLOCKQUOTE][BR]
[BLOCKQUOTE]2. On or prior to August 29, 2002, the Company and its affiliates will actively oppose any such Motion if filed by another party. [BR][BR]3. It is expressly recognized and agreed that if the IAM Restructuring Agreement is not signed by IAM’s President and General Chairman no later than 5 p.m. on August 29, 2002, and the 1995 IAM Agreement therefore remains effective without the Modifications, the above two paragraphs are inapplicable and have no force or effect, and the Company may make or refrain from opposing any such Motion with regard to the 1995 Mechanic Agreement.[BR][BR]4. Upon the IAM Restructuring Agreement becoming effective, the terms and conditions of such Agreement, including Attachment F thereto, shall control, and this letter shall be of no further force and effect. [/BLOCKQUOTE][/BLOCKQUOTE][BR]
[DIR][BR]
[DIR][BR]
[DIR][BR]
[DIR][BR]
[P align=justify][/P][/DIR][/DIR][/DIR][/DIR][BR][BR]Please indicate your agreement to the foregoing by signing below.[BR][BR][STRONG]This proves you cannot trust management and they dont care about us workers if they want to go back on their signed legal agreement![/STRONG]
[P align=center]US Airways Group, Inc.[BR]US Airways, Inc.[BR]2345 Crystal Drive[BR]Arlington, VA 22227[BR]
[P align=center][BR][BR]Scotty Ford[BR]President and General Chairman[BR]International Association of Machinists[BR]and Aerospace Workers – District 141M[BR]321 Allerton Avenue[BR]South San Francisco, CA 94080[BR][BR]Re: Restructuring Program[BR][BR]Dear Mr. Ford:[BR]
[P align=justify]The modifications to the 1995 Mechanical and Related Agreement (the Modifications) reached in connection with the 2002 Restructuring Program of the US Airways Group, Inc. and US Airways, Inc. (together, the Company) were agreed to by IAM in furtherance of the Company’s effort to successfully restructure its operations and capital structure and in consideration of the Company’s waiver and agreements herein. The Modifications were embodied in the revised collective bargaining agreement between IAM and the Company described as the IAM Restructuring Agreement.[BR]
[P align=justify][BR]
[P align=justify]This Letter of Agreement is a part of the Modifications and the IAM Restructuring Agreement, and is effective only if and when the IAM Restructuring Agreement becomes completely and unconditionally effective, and there are no conditions subsequent to its continuing effectiveness.[BR]
[P align=justify][BR]
[P align=justify]The Company believes that:[BR]
[P align=justify][BR]
[UL][BR]
[LI]The Modifications are based on the most complete and reliable information available to the Company; [/LI][/UL][BR]
[P align=justify][BR]
[UL][BR]
[LI]The Modifications permit the Company to avoid irreparable harm and provide for all the appropriate modifications to the 1995 Mechanical and Related Agreement that are necessary to permit the successful restructuring and reorganization of the Company. [BR]
[LI]The balance of equities favors the IAM Restructuring Agreement and the Company’s adherence thereto. [/LI][/UL][BR]
[P align=justify][BR][BR]The Company agrees that if a petition for bankruptcy is filed with respect to either US Airways Group, Inc. or US Airways, Inc., during the calendar year 2002 (the Filing):[BR]
[P align=justify][BR]
[OL][BR]
[LI]Neither the Company nor any affiliate will file or support any motion pursuant to 11 U.S.C. Sections 1113, 1113 (e), 1114, 1114 (h) or any other provision of the Bankruptcy Code, seeking rejection or modification of, or relief or interim relief from, the IAM Restructuring Agreement.(a Motion). [BR]
[P align=justify][BR][/P]
[LI]The Company and its affiliates will actively oppose any such Motion if filed by another party. [BR]
[LI]It is expressly recognized and agreed that if the IAM Restructuring Agreement is not completely and unconditionally effective, and the 1995 Mechanical and Related Agreement therefore remains effective without the Modifications, the above two paragraphs are inapplicable and have no force or effect, and the Company may make or refrain from opposing any such Motion with regard to the 1995 Mechanical and Related Agreement. [/LI][/OL][BR]
[P align=justify][BR][BR][BR][BR]In the event that the Company files a petition for bankruptcy and US Airways determines to request additional modifications to the IAM Restructuring Agreement to support reduced cash flows, to secure debtor-in-possession financing, and/or attract capital, the Company and IAM will meet to negotiate regarding such additional modifications to the mutual satisfaction of both parties within fifteen days of such determination. Neither party will be required to reach agreement regarding such modifications and the failure to reach such agreement will not affect the commitments in this letter.[BR][BR]Please indicate your agreement to the foregoing by signing below.[BR][BR][BR][BR]August 11, 2002[BR][BR]Scotty Ford[BR]President and General Chairman[BR]International Association of Machinists[BR]and Aerospace Workers – District 141M[BR]321 Allerton Avenue[BR]South San Francisco, CA 94080[BR][BR]Re: The Company’s Restructuring Proposal[BR][BR]Dear Mr. Ford:[BR]
[P align=justify]I write to confirm the additional commitments of US Airways Group, Inc. and US Airways, Inc. (the Company) with respect to the modifications (the Modifications) to the 1995 IAM-US Airways Mechanical and Related collective bargaining agreement (the 1995 Mechanic Agreement), such Modifications as applied to the 1995 Mechanic Agreement being defined as the IAM Restructuring Agreement.[BR]
[P align=justify][BR]
[P align=justify]The Company is prepared to make certain commitments if the following three conditions occur:[BR]
[P align=justify][BR]
[BLOCKQUOTE][BR]
[BLOCKQUOTE][BR]
[BLOCKQUOTE][BR]
[BLOCKQUOTE]1. The IAM submits the Company’s proposal for restructuring for membership ratification no later than August 11, 2002; and[/BLOCKQUOTE][/BLOCKQUOTE][/BLOCKQUOTE][/BLOCKQUOTE][BR]
[P align=justify][BR]
[DIR][BR]
[DIR][BR]
[DIR][BR]
[DIR][BR]
[P align=justify]2. The membership ratification vote is counted no later than August 29, 2002; but[BR]
[P align=justify][BR]
[P align=justify]3. The Company enters bankruptcy prior to the count on the membership ratification vote.[BR]
[P align=justify][/P][/DIR][/DIR][/DIR][/DIR][BR]
[BLOCKQUOTE][BR]
[P align=justify]If the three above conditions occur, then the Company’s commitments through 5:00 p.m. on August 29, 2002 are as follows:[/P][/BLOCKQUOTE][BR]
[P align=justify][BR]
[BLOCKQUOTE][BR]
[BLOCKQUOTE]1. Neither the Company nor any affiliate will file or support any motion pursuant to 11 U.S.C. Sections 1113, 1113 (e), 1114, 1114 (h) or any other provision of the Bankruptcy Code, seeking rejection or modification of, or relief or interim relief from, the 1995 Mechanic Agreement or the IAM Restructuring Agreement for hearing prior to August 30, 2002. [/BLOCKQUOTE][/BLOCKQUOTE][BR]
[P align=justify][BR]
[BLOCKQUOTE][BR]
[BLOCKQUOTE]2. On or prior to August 29, 2002, the Company and its affiliates will actively oppose any such Motion if filed by another party. [BR][BR]3. It is expressly recognized and agreed that if the IAM Restructuring Agreement is not signed by IAM’s President and General Chairman no later than 5 p.m. on August 29, 2002, and the 1995 IAM Agreement therefore remains effective without the Modifications, the above two paragraphs are inapplicable and have no force or effect, and the Company may make or refrain from opposing any such Motion with regard to the 1995 Mechanic Agreement.[BR][BR]4. Upon the IAM Restructuring Agreement becoming effective, the terms and conditions of such Agreement, including Attachment F thereto, shall control, and this letter shall be of no further force and effect. [/BLOCKQUOTE][/BLOCKQUOTE][BR]
[DIR][BR]
[DIR][BR]
[DIR][BR]
[DIR][BR]
[P align=justify][/P][/DIR][/DIR][/DIR][/DIR][BR][BR]Please indicate your agreement to the foregoing by signing below.[BR][BR][STRONG]This proves you cannot trust management and they dont care about us workers if they want to go back on their signed legal agreement![/STRONG]
airknocker
Member
- Aug 21, 2002
- 52
- 0
I think we all have to recognize what this situation is; just a high stakes game between CEOs and high rolling investors who don't give one whit whether their antics harm stockholders, employees or the traveling public. For them its a win-win, if we liquidate or be sold off to the highest bidder, their bank accounts in the Caymans(?Carribean Network?) or in other safe countries will be secure and they can boast of their machinations at the next vintage sports car rally or wine competition. We are pawns, no more no less, pilot, f/a, mech or any other employee that soldiers on each day. They always win, unless they are arrogant enough to raise the ire of some low level drone in corporate accounting and some records go to the Justice Dept. Ah, we can dream. Happy Thankgiving all! P.S. I wonder what we're getting for Christmas?
biffeman:
I have 25 years with this company. YOU said screw them/burn the place to the ground. That gives great insight into your character and enables me to judge you. Period. I don't care how badly this airline screws you OR me. We are ultimately in charge of our own destiny. I am very close to leaving here for better things. But I would never burn the place to the ground. Being pissed off is one thing. Making absurd statements based on anger is foolish. Wishing ill on your fellow workers by burning it to the ground shows how much you value your fellow workers.
You don't have to take this. Nor do I. And I refuse to allow a management team (regardless of who they are) get to me. Grow up. You and 513AU are acting like children. You are letting them get to you. IT'S JUST A JOB. Let those that want to continue here do so. For me, I am about to leave for greener pastures. I suggest you do the same. You'll sleep better at night.
I have 25 years with this company. YOU said screw them/burn the place to the ground. That gives great insight into your character and enables me to judge you. Period. I don't care how badly this airline screws you OR me. We are ultimately in charge of our own destiny. I am very close to leaving here for better things. But I would never burn the place to the ground. Being pissed off is one thing. Making absurd statements based on anger is foolish. Wishing ill on your fellow workers by burning it to the ground shows how much you value your fellow workers.
You don't have to take this. Nor do I. And I refuse to allow a management team (regardless of who they are) get to me. Grow up. You and 513AU are acting like children. You are letting them get to you. IT'S JUST A JOB. Let those that want to continue here do so. For me, I am about to leave for greener pastures. I suggest you do the same. You'll sleep better at night.
UAL777flyer
Veteran
- Aug 20, 2002
- 730
- 0
To be fair, Dave Siegel has absolutely ZERO control over the continually worsening industry revenue situation, as well as the geo-political situation in the Middle East. And that is what is dictating US Airways need to get more cost cuts. Without them, their ATSB business plan is not viable because it assumes a stream of revenue that can't possibly be met at this time going forward.
This is exactly the reason why I think that US Airways could be liquidated. I mean no disrespect whatsoever to the employees. But there will reach a point (if it hasn't been reached already) where the employees will no longer be willing to give back to the company. At that point, Siegel will be out of options and the pressure to liquidate will mount, unless some other entity comes a long to bail them out. My company (UA) is traveling the same road, just a few miles behind you. If the unions at US do not agree quickly to the cuts the company says they need, it will be interesting to see how the company can keep going indefinately. I sincerely hope it works out for all of you. The situation sucks. Hopefully it will turn around soon.
This is exactly the reason why I think that US Airways could be liquidated. I mean no disrespect whatsoever to the employees. But there will reach a point (if it hasn't been reached already) where the employees will no longer be willing to give back to the company. At that point, Siegel will be out of options and the pressure to liquidate will mount, unless some other entity comes a long to bail them out. My company (UA) is traveling the same road, just a few miles behind you. If the unions at US do not agree quickly to the cuts the company says they need, it will be interesting to see how the company can keep going indefinately. I sincerely hope it works out for all of you. The situation sucks. Hopefully it will turn around soon.
N305AS
Advanced
- Aug 20, 2002
- 133
- 0
I hope and pray that US Airways can avoid Chapter 7 liquidation. That nightmare hit my family once (via EA), and I wouldn't wish that scenario upon anyone, let alone the fine men and women who work for US.
That having been said...as the gentleman before me said, UA is on the same road, albeit a few miles behind US. IF this ultimately turns into a liquidation for US, hopefully UA (both employees and management) will learn from this lesson to openly and honestly work together for the sake of their company's future.
Good luck to ALL airline employees out there, especially those at US and UA.
That having been said...as the gentleman before me said, UA is on the same road, albeit a few miles behind US. IF this ultimately turns into a liquidation for US, hopefully UA (both employees and management) will learn from this lesson to openly and honestly work together for the sake of their company's future.
Good luck to ALL airline employees out there, especially those at US and UA.
[blockquote]
----------------
On 11/27/2002 12:30:02 PM airknocker wrote:
Happy Thankgiving all! P.S. I wonder what we're getting for Christmas?
----------------
[/blockquote]
The safe bet will be a sharpend stick in the other eye..or available orifice of choice.
Happy Thanksgiving to one and all!!!
----------------
On 11/27/2002 12:30:02 PM airknocker wrote:
Happy Thankgiving all! P.S. I wonder what we're getting for Christmas?
----------------
[/blockquote]
The safe bet will be a sharpend stick in the other eye..or available orifice of choice.
Happy Thanksgiving to one and all!!!
Search - Finance Home - Yahoo! - Help
--------------------------------------------------------------------------------
Reuters
US Airways Outlines Mechanics' Requests
Wednesday November 27, 12:28 pm ET
NEW YORK (Reuters) - US Airways Group Inc. (OTC BB:UAWGQ.OB - News), which filed for bankruptcy in August, has asked mechanics and fleet service workers to let it outsource certain tasks, raise medical insurance costs, and make other changes in work rules to help save another $200 million each year, union representatives said.
ADVERTISEMENT
The proposed cuts, announced late on Tuesday, are part of a new push by Arlington, Virginia-based US Airways to slash another $300 million in yearly costs, on top of $1.3 billion in annual wage cuts already secured.
Revenue at the bankrupt air carrier, the nation's sixth-largest, has come in below levels it targeted in its application for $900 million in federal backing on a $1 billion loan.
That application for loan guarantees won conditional approval from the government's Air Transportation Stabilization Board. But US Airways does not expect final approval until it cuts enough costs to make up for the revenue shortfall and emerge from bankruptcy, which it expects to do in March.
The carrier announced on Tuesday that it would furlough 2,500 workers from all areas of its operations in the next three months. It immediately shut down a maintenance facility in Tampa, Florida, which the International Association of Machinists (IAM) said put 500 of its members out of work.
US Airways management met with IAM representatives late on Tuesday and said the airline was looking to save $200 million by changing employee work rules and benefits across its work force, according to a Web bulletin posted by union representatives.
US Airways spokesman David Castelveter would not comment specifically on talks with the IAM, but he said success was crucial in negotiations with all of the airline's labor unions over work rule changes.
It is imperative that we reduce our cost structure by $1.6 billion annually, and in order to do that, we need to continue to work with our employees to find ways to operate more productively, Castelveter said.
IAM Presidents and General Chairmen Randy Canale and Scotty Ford bristled at new requests from the airline.
When IAM members recently ratified modifications to their US Airways agreements, it came with the company's assurance that the revisions were all US Airways needed to successfully emerge from bankruptcy, Canale and Ford said in the letter to union members.
IAM leadership agreed that new changes to the contracts are not acceptable and have not been proven justified, they added.
The IAM was the only labor union to initially vote down its wage concession proposal from US Airways, which called for $160 million in wage cuts and other concessions each year. The union voted again and approved the package in mid-September.
US Airways asked IAM representatives on Tuesday for permission to outsource plant and ground equipment maintenance, aircraft catering, mail and cargo, and other operations. It requested that lower-qualified workers replace the mechanics who receive and push out airplanes and de-ice them.
US Airways also said it wants to eliminate its commitment for a 2-percent match to 401(k) retirement plan contributions for mechanics, and requested that all IAM members double their contributions for medical benefits.
In the case of a war with Iraq, US Airways said it will seek an immediate wage deferral of 5 percent for up to a year and a half, the message to union members said.
In return for workers' cooperation, the air carrier would agree to keep its fleet of aircraft at the current level of 279 or higher to protect jobs.
Well well...Maybe we can give back less , if we guess correctly on how long it takes to whip Saddams butt?
They are certainly covering all the bases , aren't they?
Maybe they should apply the same amount of effort to getting people to actually fly on our planes...then maybe less of this doom and gloom would be needed.
--------------------------------------------------------------------------------
Reuters
US Airways Outlines Mechanics' Requests
Wednesday November 27, 12:28 pm ET
NEW YORK (Reuters) - US Airways Group Inc. (OTC BB:UAWGQ.OB - News), which filed for bankruptcy in August, has asked mechanics and fleet service workers to let it outsource certain tasks, raise medical insurance costs, and make other changes in work rules to help save another $200 million each year, union representatives said.
ADVERTISEMENT
The proposed cuts, announced late on Tuesday, are part of a new push by Arlington, Virginia-based US Airways to slash another $300 million in yearly costs, on top of $1.3 billion in annual wage cuts already secured.
Revenue at the bankrupt air carrier, the nation's sixth-largest, has come in below levels it targeted in its application for $900 million in federal backing on a $1 billion loan.
That application for loan guarantees won conditional approval from the government's Air Transportation Stabilization Board. But US Airways does not expect final approval until it cuts enough costs to make up for the revenue shortfall and emerge from bankruptcy, which it expects to do in March.
The carrier announced on Tuesday that it would furlough 2,500 workers from all areas of its operations in the next three months. It immediately shut down a maintenance facility in Tampa, Florida, which the International Association of Machinists (IAM) said put 500 of its members out of work.
US Airways management met with IAM representatives late on Tuesday and said the airline was looking to save $200 million by changing employee work rules and benefits across its work force, according to a Web bulletin posted by union representatives.
US Airways spokesman David Castelveter would not comment specifically on talks with the IAM, but he said success was crucial in negotiations with all of the airline's labor unions over work rule changes.
It is imperative that we reduce our cost structure by $1.6 billion annually, and in order to do that, we need to continue to work with our employees to find ways to operate more productively, Castelveter said.
IAM Presidents and General Chairmen Randy Canale and Scotty Ford bristled at new requests from the airline.
When IAM members recently ratified modifications to their US Airways agreements, it came with the company's assurance that the revisions were all US Airways needed to successfully emerge from bankruptcy, Canale and Ford said in the letter to union members.
IAM leadership agreed that new changes to the contracts are not acceptable and have not been proven justified, they added.
The IAM was the only labor union to initially vote down its wage concession proposal from US Airways, which called for $160 million in wage cuts and other concessions each year. The union voted again and approved the package in mid-September.
US Airways asked IAM representatives on Tuesday for permission to outsource plant and ground equipment maintenance, aircraft catering, mail and cargo, and other operations. It requested that lower-qualified workers replace the mechanics who receive and push out airplanes and de-ice them.
US Airways also said it wants to eliminate its commitment for a 2-percent match to 401(k) retirement plan contributions for mechanics, and requested that all IAM members double their contributions for medical benefits.
In the case of a war with Iraq, US Airways said it will seek an immediate wage deferral of 5 percent for up to a year and a half, the message to union members said.
In return for workers' cooperation, the air carrier would agree to keep its fleet of aircraft at the current level of 279 or higher to protect jobs.
Well well...Maybe we can give back less , if we guess correctly on how long it takes to whip Saddams butt?
They are certainly covering all the bases , aren't they?
Maybe they should apply the same amount of effort to getting people to actually fly on our planes...then maybe less of this doom and gloom would be needed.
Well, damn, I had put all my rage and anger over yesterday's news in the back of my mind, and now THIS!?!
OK, let's set emotion aside, and as they say at Harvard Business School, 'game this out.'
U needs these cuts - true or false.
If true, then,
1. This job, except for management and pilots, will not be worth having for the next decade.
2. There is no guarantee this will save the company.
If false, then,
1. This is a bluff by U to buy the table.
The 1113 letters now protects labor from the BK judge; who woulda thunk it? Management can't get this wish list unless WE give it to them. They can't impose it. Expect much threats and intimidation here.
In closing, U may very well go Chapt 7 in spite of or despite what we do. At some point, we have to accept that.
Good luck all; the ONLY reason U is still here is because of an outstanding group of front line pro's.
OK, let's set emotion aside, and as they say at Harvard Business School, 'game this out.'
U needs these cuts - true or false.
If true, then,
1. This job, except for management and pilots, will not be worth having for the next decade.
2. There is no guarantee this will save the company.
If false, then,
1. This is a bluff by U to buy the table.
The 1113 letters now protects labor from the BK judge; who woulda thunk it? Management can't get this wish list unless WE give it to them. They can't impose it. Expect much threats and intimidation here.
In closing, U may very well go Chapt 7 in spite of or despite what we do. At some point, we have to accept that.
Good luck all; the ONLY reason U is still here is because of an outstanding group of front line pro's.
