Below is an ariticle written by a New York Congressman. I was very impressed with his Pro Labor stance and his recognition to balance the bottom line. I wanted to share this post.
US Airways holds out cup to taxpayers while execs get rich.
Thursday, March 06, 2003
By James T. Walsh- Payments of $35 million to the retiring leadership of a failed corporation struggling to emerge from bankruptcy while firing employees and eliminating company pension programs. Sounds like an injustice associated with the collapse of Enron, Global Crossing or WorldCom, doesn't it?
It's not. It's a recent headline describing the greed of US Airways management, the same trio that's held our own community hostage with high air fares and poor jet service for years.
The Arlington, Va.-based airline recently paid its chairman, Stephen Wolf, $15 million for stepping down as chief executive last year. Former president and chief executive Rakesh Gangwal received his own $15 million check a year earlier when he left. Another - the company's general counsel and vice president, Lawrence Nagin - received $5 million.
All the while, US Airways continues its woe-is-me struggle to emerge from bankruptcy protection by laying off longtime workers, slashing employee benefits and eliminating its pilots' pension plan.
As a former business executive, I recognize the need to balance the bottom line and to achieve cost savings in difficult financial times, especially for an airline in this current economy. But when that company lays off thousands of workers, renegotiates salaries and benefit packages with others to spare them their own job elimination, destroys its pilots' retirement security, and then rewards its failed leaders with outrageous bonus checks upon their own departure, something is just not right.
When you add to that equation the fact that US Airways has asked federal taxpayers to loan the company $900 million in public funds to stay afloat, it outright turns your stomach. There's even talk now in Washington that the major U.S. carriers will be asking for passage of a specific industry tax relief package in the 108th Congress. What can they be thinking?
For years, poor management of the nation's major airlines has forced them to balance their operations at large-scale, more profitable facilities on the backs of small and medium-sized cities like Syracuse. By eliminating jet service and increasing air fares, the airlines assist their own corporate bottom line while stifling economic growth and opportunity in dozens of medium-sized metropolitan regions across the nation.
Granted, the events of Sept. 11, 2001, did not help an industry struggling to make ends meet. Subsequent fallout only made a bad situation worse.
But here in Syracuse, US Airways has long dominated the traffic into and out of Hancock Airport. As such, it effectively controls local airfares and has decimated local jet service. Thanks to US Airways, our community can brag about having the eighth-highest airfares in the entire nation.
I respect the work of local US Airways employees. I know them well, as I commute to my job in Washington weekly aboard their aircraft. They're good, hard-working people. It's about time, however, for company management to respect and appreciate their work and sacrifice as well.
Until that happens, I will encourage the Air Transportation Stabilization Board to thoroughly question US Airways' application for federal funding support. Before any such public bailout of US Airways is completed, the U.S. Bankruptcy Court should recoup the payments made to former company executives.
I also pledge to oppose any and all future legislation to assist the industry unless provisions are included requiring the provision of better service and equitable fares for our nation's smaller and medium-sized community airports.
The airlines have had their way for too long now without any degree of commitment to the communities they serve or the people they employ. It's time for that to change. James T. Walsh, R-Onondaga, represents New York's 25th District in the House of Representatives.