The 8 aligned MEC members forced the MEC meeting to go into "open session" and the 4 RC4 "hardliners" do not like it.
Here's a synopis of what's happening:
The MEC is now split with 8 Reps supporting a resolution charging the NC to obtain a deal with the company with no restrictions, but the Pittsburgh & Philadelphia Reps are standing firm so far that any deal would require no less than a 10% DC Plan cut.
ALPA’s principal legal advisor Mike Abram, from Cohen, Weiss, and Simon was asked “what are the risks of not reaching an agreement?
(Paraphrased) Without a deal I believe we will go into S.1113E process, which will affect wages and the prospects will be significantly worse. There are other stakeholders involved that will put significant restraints on management concerning your pay and work rules. They might have to reshape the company in order to get financial investors. They would have to put very, very, very streamlined pay and work rules. If no agreement is reached, the possibility of exiting bankruptcy is diminished. Is it a better deal to go into bankruptcy without a deal? No! The pressure is on us in bankruptcy. Do members have a right to vote on there future? If it is the view of the MEC that the members should be consulted on their future that time is nearly coming to an end. The conditions facing the company gives them very little time. We have arrived at that moment.
Then the same questions were asked of ALPA’s investment banker Michael Glanzer.
Glanzer said, (Paraphrased) “If you do not come to an agreement. Whatever is on the table will be worse. YOU CANNOT ASSUME that the fleet size would remain the same. The investors would want a program that would cut the airline to bare bones, and you will become the lowest cost carrier around. Because the ATSB and investors want concrete guarantees that they will get their money back. The ATSB couldn't care less if the airline survives in the long term. The investors :ATSB, GE, etc. can decide that they just want their money now and just liquidate. There are NO new investors. Keep testing the company on a lower level of give other than the $295 million is not going to work. The reality of the marketplace is Oil at $45 a barrel.
Then Glanzer was asked if the MEC sends the Negotiating Committee back into negotiations with restrictions that the Pittsburgh and Philadelphia MEC Reps desire (no further DC Plan changes) can we get an agreement?
Glanzer’s answer: "NO!"
Then one of the 8 MEC members now in agreement gave a very good explanation on the current situation - starting with the gutting of the NC against the views of every ALPA advisor, the MEC officers, the ALPA president, and the majority of the MEC. Next he discussed the events of the past few weeks and with that Pittsburgh Captain Fred Freshwater got up and left room telling a MEC Rep that he was not going to take his BS.
The debate continues and the issue is this: send the NC into negotiations to cut a deal that provides $295 in cost cuts or do nothing. If nothing is done and the company enters bankruptcy without a deal with ALPA, the advisors believe US Airways become much smaller and with a much worse contract.
In my opinion, the union's and in ALPA's case the RC4 are now leading the way for the death of US Airways.
Respectfully,
USA320Pilot
P.S. One NC just left the meeting in protest because the RC4 are trying to put restrictions on the process. Nobody knows where he went...
