USA320Pilot
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- May 18, 2003
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Us Airways Union Struggle Nears
- Thread starter USA320Pilot
- Start date
Tim Nelson
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the only contention that needs to be removed by your company is stepping up with a real 1113 or 1114. For some reason there seems an unwillingness to provide the pilot group with anything more than a pumpkin 1113.
The University of Pitt professor is a long way from home and is speaking not only in error but from behind his pseudo bench seat. Who is he to judge Freshwater as someone who is hijacking a union? At any rate, the Pitt professor is showing his agenda.
Freshwater I applaud. What union guy in their right mind would push for a proposal that have 1113's and 1114's that expire into a pumpkin at midnight?
The University of Pitt professor is a long way from home and is speaking not only in error but from behind his pseudo bench seat. Who is he to judge Freshwater as someone who is hijacking a union? At any rate, the Pitt professor is showing his agenda.
Freshwater I applaud. What union guy in their right mind would push for a proposal that have 1113's and 1114's that expire into a pumpkin at midnight?
OP
USA320Pilot
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- May 18, 2003
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The company is entering bankruptcy without DIP financing and thus cash flow will be critical going forward. The company must do everything it can to maintain cash levels high to not default on the loan guarantee.
The U.S. bankruptcy code provides for 60 days upon entrance for the debtor-in-possession to decide whether or not it wants to reject aircraft leases. Bruce Lakefield told the ALPA MEC that the A330's may have to be removed from service because they have required heavy maintenance checks due this winter that are very expensive.
Thus the conditional 60-day S.1113/S.1114 letter provided to ALPA, which would have expired on November 12, 2004, 60 days after the expected September 12, 2004 filing.
The RC4's action was taken against the recommendations of ALPA's legal and financial advisor's, all three MEC officers, and the majority of the MEC members.
In addition, with a possible Chapter 11 filing in the very near future, no agreement with the company, and thus no protection whatsoever for this pilot group going into bankruptcy. And what's at stake? According to our legal and financial advisors, our entire contract in now in grave jeopardy, including Scope (alter-ego airlines flying our A-320's), Fragmentation Protections (at 15% trigger, the best in the industry), and Seniority Rights (thus allowing a furlough out of seniority, according to equipment type).
The action of the RC4 will not only hurt pilots, but every employee in this company.
Without last minute agreements, here is what I believe will happen.
US Airways will file S.1113e (e for emergency)/S.1114 motions against any union without a TA. Because the company cannot use DIP financing, it will demonstrate to the court that it needs emergency relief from labor.
Contracts will be imposed on ALPA, AFA, the 3 TWU units, CWA, and the IAM-FSA. All of these units will accept the terms of their new agreement, except maybe the IAM-FSA.
The company will then impose their contract on the IAM-M who will not agree to the new terms and strike. US Airways will then outsource all heavy maintenance (which is the easy part) and use mechanics that report to work, management mechanics, and contractors to conduct line maintenance.
Each employee group has an option. Recognize the industry has forever change and elect to work in an LCC environment or work elsewhere.
Once the labor, facility, and airport lease renegotiation is complete, I then expect another equity investment, probably from RSA, who may take the company private, to recapitalize a revitalized US Airways.
REspectfully,
USA320Pilot
The U.S. bankruptcy code provides for 60 days upon entrance for the debtor-in-possession to decide whether or not it wants to reject aircraft leases. Bruce Lakefield told the ALPA MEC that the A330's may have to be removed from service because they have required heavy maintenance checks due this winter that are very expensive.
Thus the conditional 60-day S.1113/S.1114 letter provided to ALPA, which would have expired on November 12, 2004, 60 days after the expected September 12, 2004 filing.
The RC4's action was taken against the recommendations of ALPA's legal and financial advisor's, all three MEC officers, and the majority of the MEC members.
In addition, with a possible Chapter 11 filing in the very near future, no agreement with the company, and thus no protection whatsoever for this pilot group going into bankruptcy. And what's at stake? According to our legal and financial advisors, our entire contract in now in grave jeopardy, including Scope (alter-ego airlines flying our A-320's), Fragmentation Protections (at 15% trigger, the best in the industry), and Seniority Rights (thus allowing a furlough out of seniority, according to equipment type).
The action of the RC4 will not only hurt pilots, but every employee in this company.
Without last minute agreements, here is what I believe will happen.
US Airways will file S.1113e (e for emergency)/S.1114 motions against any union without a TA. Because the company cannot use DIP financing, it will demonstrate to the court that it needs emergency relief from labor.
Contracts will be imposed on ALPA, AFA, the 3 TWU units, CWA, and the IAM-FSA. All of these units will accept the terms of their new agreement, except maybe the IAM-FSA.
The company will then impose their contract on the IAM-M who will not agree to the new terms and strike. US Airways will then outsource all heavy maintenance (which is the easy part) and use mechanics that report to work, management mechanics, and contractors to conduct line maintenance.
Each employee group has an option. Recognize the industry has forever change and elect to work in an LCC environment or work elsewhere.
Once the labor, facility, and airport lease renegotiation is complete, I then expect another equity investment, probably from RSA, who may take the company private, to recapitalize a revitalized US Airways.
REspectfully,
USA320Pilot
oldiebutgoody
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- Aug 23, 2002
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I think the if the RSA thinks that going into chapter 11 will gain them anything, they are mistaken. They are making the same mistake that Wolf, Gangwal and Siegel did before and during the last chapter 11, operating as if they are in a vacuum. All it will take is another entity, say VirginAmerica, TPG, GECAS, or any number of others (including competitors that just want UAIR shut down, and don't at all mind sticking the debt holders at UAIR with NOTHING) to present a case that their plan is better for the creditors (probably NOT a very difficult case to make, seeing how UAIR has been run in the last 2 years). Don't forget, "self help" is also an option if the court sticks ANY group with more than it feels is fair, and there are groups out there with a lot more backbone than ALPA. The minute the paperwork is filed for chapter 11 the unions should file a petition to remove the current BOD (Bronner included) and have the company run by a trustee, just like the unions are attempting to do at UAL. There are MANY more scenarios which could play out. I feel that for the BOD to think that another chapter 11 can come and go without some MAJOR changes in control and management would be VERY shortsighted.
As someone who has gone through the BK process when TWA was bought by AA, I can tell you that DO NOT believe everything ALPA National tells you, that includes their advisors. ALPA National has a different interest in mind, they do not want to lose 3000 dues paying members, inother words, they would rather keep getting dues, even at a lower payscale or, even with only 2000 pilots on the property than to lose the dues all together. As for 1113/1114, people seem to think that the company can drop one off at the court at will and the judge will automatically approve it, it is NOT the case. There is a process set which the company and the labor groups must follow before a judge will even attempt to throw out a contract. The reason why airlines in BK have not filed these but only threatened to file them is because of this process, it's not a sure thing. If a company were to file one in haste and get rejected by the courts, then they no longer have leverage. I would certainly caution anyone to sign a proposal that lets the no 1113/1114 filing for 60 days only. Better get something a heck of a lot better than just 60 days. Good luck to all US Air employees, me and 20,000 other TWA employees have been there, done that, and have the scars to prove the beating we took.
Tim Nelson said:
Freshwater is incorrect as it should mean what is, that being, Stalewater.
Not long ago if memory serves me, and it always does, the university professor was applauded right here on these boards for having wisdom. That same wisdom that now goes against the tide has reverted the professor to an idiot on these boards. I Love It.
Face it people, there is no fighting because they is nothing to fight. There is zero to divvy up.
Like the song says: Nothin' from nothin' leaves nothin'
Go Billy Preston
BoeingBoy
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- Nov 9, 2003
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Funny, the 60 days is tied to getting concessions from the other employee groups, not returning airplanes to the leasors or parking them. Could USA320Pilot be confused?
In the event of a "material" reduction in mainline flying (as described by USA320Pilot), the 1113 letter offered can be voided at any time - like immediately.
Oh what a tangled web.....
Jim
In the event of a "material" reduction in mainline flying (as described by USA320Pilot), the 1113 letter offered can be voided at any time - like immediately.
Oh what a tangled web.....
Jim
Forced to negotiate what..?
It will not force them to change their negotiating stance, if anything their demands will become greater. BK, contract abrogation proceedings, and probable liquidation will do nothing but increase the pressure on labor.
Yeah BK Will force negotiations, so no more of IAM refusing to come to the table. How do you that is bad for the company?
This is not an episode of "Judge Judy", where she would make the viewers happy by telling off the company suits, demanding that they be quiet...
Abrogation will be the threat for most unions, and the hammer for the remainder. They will only need to obtain it from the judge on the few work groups they plan to work over anyways, not all.
If the majority of the major unions at Airways are onboard already, then abrogation is not that hard to get for the remaining holdouts.
Hello, this is reality, not TV.
It will not force them to change their negotiating stance, if anything their demands will become greater. BK, contract abrogation proceedings, and probable liquidation will do nothing but increase the pressure on labor.
Yeah BK Will force negotiations, so no more of IAM refusing to come to the table. How do you that is bad for the company?
This is not an episode of "Judge Judy", where she would make the viewers happy by telling off the company suits, demanding that they be quiet...
Abrogation will be the threat for most unions, and the hammer for the remainder. They will only need to obtain it from the judge on the few work groups they plan to work over anyways, not all.
If the majority of the major unions at Airways are onboard already, then abrogation is not that hard to get for the remaining holdouts.
Hello, this is reality, not TV.
EyeInTheSky
Veteran
Chicken Little, calm down. There are very specific criteria during bankruptcy proceedings. I am just amazed that anyone thinks a shotgun "agreement" can possibly make anything better, now.
