USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
Earlier today ALPA Boston F/O Rep wrote the following comments:
In the company's Sept.6 proposal that 8 members of the MEC tried to send out to the pilots for a membership vote, an effort shot down by the PIT/PHL Reps' Roll Call vote, we had Fragmentation Protection.
By that Friday, Sept. 10, the company's offer to include Fragmentation Protection in our TA had disappeared, along with many other provisions in our contract, just as our advisors had predicted would happen if we procrastinated in reaching a deal with the company.
Why did the company's "ask" go up, be that "ask" in dollars or in contractual protections, as we approached bankruptcy, and then continue to go up after we entered Chapter 11? Because, according to our advisors, since the investment community believes that we are thus becoming more and more of a bad investment risk, the company's position is that they must take increasingly more out of our contracts in order to attract DIP financing. And without DIP financing, all investment community bets appear to be on our liquidation.
What else besides Fragmentation has disappeared in the company's offers, and remains gone in our present TA, from where we were in the company's Sept. 6 proposal?
1. DC Plan went from 50% to 10%.
2. Equity participation (stock) went from 19.33% to 8.5% of the total shares issued.
3. Minimum Aircraft (279) and minimum block hour guarantees are gone.
4. Contingent Acquisition Rights (protections in the case of a buyout) are gone.
5. Special Training Relief has been granted, allowing training out of seniority.
6. No MDA Displacement Rights while we are in bankruptcy.
7. J4J Displacement Rights are gone
8. Vacation went from maximum of 28 to 21 days.
Not bad enough? Try this. If we don't stop this carnage of what is left in our contract with this TA, every one of our financial and legal advisors are of the unanimous opinion that the company will take more, and significantly more, than this away from us during the 1113 process.
Moreover, if the company must use the 1113 process, the risk of liquidation also rises significantly due to the negative message that this sends the investment community.
So there's a trend here that only is going to stop with a ratified Agreement, and on Tuesday, Oct 5, two days before the company's request for a 1113(e) interim relief of a 23% paycut is heard before Judge Mitchell, the MEC will meet in PIT to see whether or not the PIT and PHL Reps will allow this pilot group to vote on this Agreement.
In the company's Sept.6 proposal that 8 members of the MEC tried to send out to the pilots for a membership vote, an effort shot down by the PIT/PHL Reps' Roll Call vote, we had Fragmentation Protection.
By that Friday, Sept. 10, the company's offer to include Fragmentation Protection in our TA had disappeared, along with many other provisions in our contract, just as our advisors had predicted would happen if we procrastinated in reaching a deal with the company.
Why did the company's "ask" go up, be that "ask" in dollars or in contractual protections, as we approached bankruptcy, and then continue to go up after we entered Chapter 11? Because, according to our advisors, since the investment community believes that we are thus becoming more and more of a bad investment risk, the company's position is that they must take increasingly more out of our contracts in order to attract DIP financing. And without DIP financing, all investment community bets appear to be on our liquidation.
What else besides Fragmentation has disappeared in the company's offers, and remains gone in our present TA, from where we were in the company's Sept. 6 proposal?
1. DC Plan went from 50% to 10%.
2. Equity participation (stock) went from 19.33% to 8.5% of the total shares issued.
3. Minimum Aircraft (279) and minimum block hour guarantees are gone.
4. Contingent Acquisition Rights (protections in the case of a buyout) are gone.
5. Special Training Relief has been granted, allowing training out of seniority.
6. No MDA Displacement Rights while we are in bankruptcy.
7. J4J Displacement Rights are gone
8. Vacation went from maximum of 28 to 21 days.
Not bad enough? Try this. If we don't stop this carnage of what is left in our contract with this TA, every one of our financial and legal advisors are of the unanimous opinion that the company will take more, and significantly more, than this away from us during the 1113 process.
Moreover, if the company must use the 1113 process, the risk of liquidation also rises significantly due to the negative message that this sends the investment community.
So there's a trend here that only is going to stop with a ratified Agreement, and on Tuesday, Oct 5, two days before the company's request for a 1113(e) interim relief of a 23% paycut is heard before Judge Mitchell, the MEC will meet in PIT to see whether or not the PIT and PHL Reps will allow this pilot group to vote on this Agreement.