US Airways asks staff to work for free
Report: Bankrupt airline tries to slash costs, seeks non-union volunteers for New Year's weekend.
December 29, 2004: 8:22 AM EST
NEW YORK (Reuters) - US Airways, the bankrupt No. 7 U.S. airline, is seeking volunteers from non-union staff to work for free at its troubled Philadelphia operations over the New Year's weekend, the Washington Post reported Wednesday.
The airline canceled nearly 400 flights over Christmas weekend, leaving thousands of passengers stranded or without luggage after three times the normal rate of flight
attendants and baggage handlers based at Philadelphia called in sick.
US Airways said Tuesday its flight operations were back to normal, although it was still clearing the backlog of misplaced bags.
But the troubles threatened to further alienate customers as the carrier fights to avoid liquidation by cutting employee pay and other costs.
The newspaper said the airline has sent extra workers and executives to Philadelphia to help restore services, but is seeking employees to work for free between Dec. 30 and Jan. 3.
"This is a volunteer program," the airline said in an e-mail to staff published by the newspaper. "You will not be paid if this is on your days(s) off. It promises to be a rewarding opportunity to learn more about the operation of our airline and come face to face with our customers."
The airline is also examining attendance records and warned it would consider disciplinary action if it found any staff took unmerited sick leave, the newspaper said.
US Airways was one of two airlines that suffered major service problems over Christmas weekend. Delta Air Lines Inc.'s regional carrier Comair canceled all flights on Saturday after a computer malfunction, blamed on bad weather.
The Transportation Department has launched an investigation into the airline industry's performance in the wake of the weekend woes to see if carriers are living up to customer service commitments made five years ago.
AtlanticBeach
Dec 29, 04, 9:45 am
Let's go right to the source.....
To All Employees ... Please Post ... Special Bulletin
The Associated Press ran a story on Tuesday evening
later picked up by other news media suggesting that
the company was asking employees to "work for free"
in Philadelphia on New Year's Eve. This unfortunate
and erroneous report has many people confused, and we
want to clarify this matter.
We have had management employees in Philadelphia since
last week helping with the baggage backlog. As we
prepare for another busy travel period this coming
weekend, we are asking for employee volunteers from
around the system to come to Philadelphia to help
assist our customers, by greeting them in the airport
ticket counter area, answering questions, serving
coffee and refreshments, helping at security
checkpoints and directing traffic. We know that many
frontline employees have been working extra hard this
past week, and this effort is designed to supplement
that hard work by having extra people on hand to help
our customers.
All employees scheduled to work in Philadelphia and at
other airports around the system will be paid as is
usual and customary, including overtime pay. We have
been getting many offers from employees who want to
help, and this effort will allow them to assist our
customers and provide some support for the Philadelphia
station.
We regret the confusion.
YYZC2
Dec 29, 04, 10:04 am
We regret the confusion.
What confusion? The report is accurate. Unless some of the union workers scheduled to work on these days misconstrued the memo as telling them that they would not be compensated for their normal shifts, there is nothing to correct. :confused:
Beckles
Dec 29, 04, 10:15 am
I think it's pretty misleading right from the title when they say "US Airways asks staff to work for free" ... seeing as it's only non-union employees, doesn't this pretty much limit it to management and administrative personnel? Using the word "staff" to me implies a much broader group than is actually the case.
kdinino
Dec 29, 04, 10:39 am
Who are the NIMRODS working in PR for this company??? How can they let this happen? Who leaked this story and F-ed it up this bad that a reporter had this headline....
This is just laughable now...someone pull the trigger and end everyone's misery.
NYCommuter
Dec 29, 04, 10:46 am
I thought that hourly workers couldn't work for free, as that would violate minimum wage laws. Salaried employers could work for no extra pay, but that wouldn't be for "free" since they're already being paid a salary.
Come on, Ben Baldanza! That press release just made US Airways look bad.
magiciansampras
Dec 29, 04, 10:52 am
Ouch. That's really bad. CNN just ran the story saying: "Guess what US Air is asking of their employees over the holidays? To work for free."
Terrible, terrible PR. Things have gone from bad to worse.
myleguy
Dec 29, 04, 11:02 am
Nonexempt employess cannot work for free under the Fair Labor standards Act, I believe. Not all salaried employees are considered "exempt" under the statute, to make it even more confusing. The Act also provides for serious penalties and attorney's fee awards as well. Even trying something like this would just add to the woes over at US. Where's the inhouse legal staff?
chicagorich
Dec 29, 04, 11:30 am
Earlier today I posted the Washinton Post article on this:
It clearly satys in the beginning of the article that the non union work were being asked to volunteer. I understood immediately what was meant. Sounds like some media types spun the request a little differently.
I think it is a good idea.
olde hornet
Dec 29, 04, 12:07 pm
ROTFL --- These are the same union workers that called out - they have no reason to "volunteer". Dont say to keep the airline going - they have done their part to put US out of business.
njd
Dec 29, 04, 12:53 pm
us airways asked employees to work for free . did someone check the definition of slavery in the dictionary?
ByrdluvsAWACO
Dec 29, 04, 12:55 pm
This is just sad.
jhpark
Dec 29, 04, 1:00 pm
i agree. Proof that reading comprehension is at a low level nowadays.
chicagorich
Dec 29, 04, 1:04 pm
Gees--you guys are brutal.....
Other posts on here criticize management for not getting more involved in PHL operations if for nothing else than to show management visibility to the customers.
Now you are criticizing US for trying to move forward with such a plan to show such visibility.
If I were a management employee at US, I would be the first in line to respond to Lakefield's request to go to PHL and lend a hand to show the passengers that the employees of US are truly committed to getting their pax to their destinations without hassles or other problems..
..
Tino
Dec 29, 04, 1:04 pm
Nonexempt employess cannot work for free under the Fair Labor standards Act, I believe. Not all salaried employees are considered "exempt" under the statute, to make it even more confusing. The Act also provides for serious penalties and attorney's fee awards as well.
Yeah, there's a big pot of gold at the end of that rainbow... :rolleyes:
craz
Dec 29, 04, 1:13 pm
Kinda late but better late than never. As per other threads. it should be known not only did Founder and CEO of SW show up doing all sorts of so called menial jobs and greeting passengers, but EVERYONE at the now defunct Peoples Express were known to do EVERY type of job when needed. Then lets not forget that David Needleman (CEO of JetBlue) has been known to get down and dirty doing those so called menial jobs. so Sorry Bruce no excuse for you and the top staff not having been at PHL last weekend nor for this coming weekend.
as for not being able to work w/o pay, I dont think its illegal, and if it was then Theres nothing illegal about donating the wages that you were paid back to the company.
Will it help, I dont think so, it just may prolong the death sorry to say. USAir is on a respiratory. What it needs is mgmt that really cares and a full employee payroll that understands they need to take drastic cuts for more work. And a Union if at all that will help out and stop the power playing. It should start with mgmt not earning any more in salary then say the most Senior Pilot makes- doubt they will agree to that. And whatever wage concessions was asked of the so called blue-collar work force, the white collars should be cut by that same amount.
chicagorich
Dec 29, 04, 1:34 pm
It should start with mgmt not earning any more in salary then say the most Senior Pilot makes- doubt they will agree to that. And whatever wage concessions was asked of the so called blue-collar work force, the white collars should be cut by that same amount.
I disagree here. In a true market economy, every job has its value and pay range that is based on two things---what is the market paying and what is the employee's performance level.
If the airlines had stuck to this basic rule for a company to be profitable, they wouldn't be in the positions that they are in now.
The pay of a management employee should not be cut below market levels if his perfomance is good simply because an employee who has less economic value in the real world needs to take a larger pay cut.
That only breeds low morale among the management employees, and as with Comair this past week--you may have the most dedicated pilots in the world, but if the systems and processes that sit behind and support the operations of the company are not up to snuff--the same sort of chaos that US saw this weekend will result.
CO FF
Dec 29, 04, 1:40 pm
1) Yes, if you read it carefully, and with even a limited amount of knowledge about workplaces generally and airlines in particular, it is clear that US was calling out the management, not the unionized rank & file.
2) Yes, the PR people could have done better.
3) Yes, after last weekend anything written publicly about US would probably be more bad PR.
4) I wouldn't be surprised if this leads to more wildcat sickouts.
5) It would be really pathetic if some baggage handler/ramper files a grievance claiming that he was denied the chance to be called in for OT work b/c the management types were working for free, and this breached the union contract...
craz
Dec 29, 04, 1:55 pm
chicagorich, I based my point on the fact that all too often Top Mgmt asks the rack and file for something they themselves arent willing to subject themselves to. but EVEN WORSE not too long ago Carty(past CEO @AA) got the rank&file to agree to hard concessions in pay and work rules ONLY to have to leave since at the same time he was giving top mgmt bonuses. Enough of this under the table slight-of-hand. AA wasnt the only one to play that game.the past CEO at US also left with his pockets overflowing. Theres no reason for these guys to be enriched as the ship is sinking, OK theres nothing illegal about it. But it STINKS. They too should get minimum pay and bonuses that are tied directly to the performance of the carriers, with the bonus not being able to be taken until the carrier is healthy. But its still the Old Boys Netwok out there and they pander to each other. If there are as good as they think they are, so let them put their $$ on the line.
Boofer
Dec 29, 04, 1:59 pm
Where's the inhouse legal staff?
I think they were laid off 2 or three rounds ago...or maybe outsourced to India. :p
martin33
Dec 29, 04, 2:02 pm
Gees--you guys are brutal.....
Other posts on here criticize management for not getting more involved in PHL operations if for nothing else than to show management visibility to the customers.
Now you are criticizing US for trying to move forward with such a plan to show such visibility.
If I were a management employee at US, I would be the first in line to respond to Lakefield's request to go to PHL and lend a hand to show the passengers that the employees of US are truly committed to getting their pax to their destinations without hassles or other problems..
..
of course they should. that doesn't excuse the PR bungling that's taken place..
to get on top of the PR wave, instead of under the anvil yet again, Lakefield himself should have led the charge. the stories about management would then show "action shots" of Lakefield et al gamely pitching in first-hand, doing everything possible to right the ship.
instead, he sat back and kept a low profile until issuing a tua-culpa memo and press release after the fact. Now a memo appears calling for volunteers, saying (to paraphrase) "you will not be paid, if it's your day off." Consequently, it's not surprising the media angle on the new story is "company can't deliver using scheduled workers, seeks volunteers to come in and do it for free"....
dreadful, dreadful PR, effectively communicating that people had better book away from US Airways since they can't deliver without volunteers working for free...
harold
Dec 29, 04, 2:17 pm
us airways asked employees to work for free . did someone check the definition of slavery in the dictionary?
Don't need to. I already know the difference between a "volunteer" and a "slave".
:rolleyes:
jcooke
Dec 29, 04, 2:31 pm
Heck, if US gave me a tour, I'd work for a couple hours throwin bags or greeting people!
Who's got the insider connection to relay this?
-JC
Shareholder
Dec 29, 04, 2:41 pm
It's times like these that us Old Folks recall the likes of PAN AM and EASTERN both great US airlines brought down by the inability of labour and management to work together for the benefit of their customers, who afterall pay the bills after banks and shareholders have fled. At US AIR it appears the unions are ready to walk their members over the cliff, lemming like, and enough of their members are so out of touch with reality that they still think its business as usual.
Maybe those of you elites who really believe in US AIR should head down to PHL and volunteer for a shift. Such an action would make the unions realize how desparate the situation really is is. And drive home the fact that somebody out there actually cares about US AIR. Obviously, too many of its staff do not care. And management has come to the end of its abilities to manage.
It wouldn't surprise me at all if on January 2nd, management went to the Bankruptcy judge and asked that the company be dissolved. It is clear that there is no way to save this airline from itself and too many of its employees.
Spiff
Dec 29, 04, 2:47 pm
Airport "security" would probably not allow FF volunteers to do anything airside. :(
jcooke
Dec 29, 04, 3:00 pm
Airport "security" would probably not allow FF volunteers to do anything airside. :(
Heck, I've been SIDA fingerprinted and gone thru US security when I applied @ US, let me in! :D
Agreed tho, getting airside wouldn't be easy unless handwalked by a US rep. But it shouldnt be a problem pax/gate-side.
-JC
Spiff
Dec 29, 04, 3:04 pm
Getting airside is easy: Fully Refundable Ticket
Being able to actually do some work airside would be difficult as airport employees are supposed to undergo an "extensive background check", even though that's a colossal joke.
TomBascom
Dec 29, 04, 3:35 pm
There are also safety issues -- it's a genuinely dangerous workplace.
To say nothing of the implications vis a vis the unions.
But there might be other sorts of things that could be done -- coffee & donuts perhaps.
EnvoyBoy
Dec 29, 04, 4:00 pm
Heck, if US gave me a tour, I'd work for a couple hours throwin bags or greeting people!
Who's got the insider connection to relay this?
-JC
Let me know if anyone contacts you. I'd go in Friday for a while and help out. I don't need to do anything that requires security. I could just point the way to places or help stand at the front of the line and identify the next free agent for the next person in line or something.
Let's give management a break here, guys. All eyes will be on US this weekend and (hopefully!) the press will pick up the story of all these US mgt types flying into US to help for free. I think it'd send a great message to employees and passengers a lot.
Before you flame me, I know it won't help the financial bottom line but it'll help the public image and how people (employees and pax) feel.
AS Flyer
Dec 29, 04, 5:02 pm
It's times like these that us Old Folks recall the likes of PAN AM and EASTERN both great US airlines brought down by the inability of labour and management to work together for the benefit of their customers, who afterall pay the bills after banks and shareholders have fled. At US AIR it appears the unions are ready to walk their members over the cliff, lemming like, and enough of their members are so out of touch with reality that they still think its business as usual.
Maybe those of you elites who really believe in US AIR should head down to PHL and volunteer for a shift. Such an action would make the unions realize how desparate the situation really is is. And drive home the fact that somebody out there actually cares about US AIR. Obviously, too many of its staff do not care. And management has come to the end of its abilities to manage.
It wouldn't surprise me at all if on January 2nd, management went to the Bankruptcy judge and asked that the company be dissolved. It is clear that there is no way to save this airline from itself and too many of its employees.
I'm just curious how little you think the employees of US should make? And how many hours should they have to work to make that? Why is it that the unions are to blame for this? How about some really pi$$ poor management? This is an airline that, until recently, operated almost 10 different aircraft types simultaneously (from three different manufacturers) from three hubs that were less than 500 miles away from each other. That alone is a pretty poor business plan. Then, they are being attacked from all sides by Southwest, Jet Blue and AirTran. Every legacy carrier is in poor financial shape right now but the difference between the others and US Airways is that the others don't have all their eggs in one basket so to speak. US Airways' success is completely dependent on people in the eastern 1/3 of the country being willing to pony up big bucks to fly on their planes. They don't have a mid-continent or west coast hub, or even presence for the most part, to fall back on when their east coast operations start falling prey to some very keen low cost operators. You might ask why US Airways can't make money in this area when these carriers can but there are some very fundamental differences between these carriers and US Airways. The first being, except in Southwest's case, that they have employees that have next to no seniority and are at the end of the pay scale to reflect that. These carriers also have a fleet limited to one or two types of aircraft, and most are newer airplanes, that don't require as much maintenance due to their age. They operate primarily domestic route systems and don't have agreements with other carriers that cost money. Southwest has treated their employees right from the start and it shows in the end results. It goes to show that the employees don't need to work themselves silly for next to no pay in order to make an airline run right. What they need is competent management with a plan that is feasible.
Right now, there are too many airlines flying and the weakest won't survive. US Airways is, unfortunately, the weakest.
Shareholder
Dec 29, 04, 5:21 pm
If you had read my posts on the AC forum over the years, you would know I am a champion of the front line airline workers at legacy carriers, and agree with almost everything you have said about how badly US AIR has been managed -- from Wolfe days onward, and before -- and poorly positioned it is in the US marketplace. As well as relying on a poorly paid workforce, which is the paradox being introced by LCCs. But the complacency of the union execs displayed now is no different from what we saw in the early 1980s when PAN AM and EASTERN went under. It was a strike by AC pilots, and a threatened one by its FAs, that undermined public confidence in that carrier three years ago and shifted a lot of its domestic customers to new LCCs. When the airline was hit with a downturn in business after 9.11, then the SARS epidemic, it had no choice but to file for bankruptcy. It was only under these circumstances that unions finally faced reality that the money would not be there to pay the wages they had been promised in strike-enduced collective agreements.
At heart, we agree the circumstances faced by Legacy carriers today in the North American context are too complex and multifaceted. In the end, US AIR will go under. The government aborted merger with UA was its death knell. It was like TWA, that needed AA to continue in some fashion. US needs UA, but times have changed and that merger is no longer practical. It would have saved maybe half of the jobs at US, but I am afraid next year 100% of those jobs will be gone. At that point, the other legacies will get stronger with one less competitor in the market.
I well understand the apprehension of loyal US AIR FFers and wish this may not be the future. However, should US go under, it would be in UA's interest to welcome you into the MP program with matched elite status, and some preservation of your miles. [If US does liquidate, there is nothing stopping UA or any other airline from buying the assets of the FF program, which would include its member accounts.]
BTW I was a loyal CP flyer and member, so have been there and thus don't come into your house to post these things lightly.
[In the meantime, I am pleased to see a couple of you have picked up on the idea of customers volunteering, and even started a new thread. While I agree it is unlikely and impractical airside, it would be a gesture that would be picked up by the media, and give employees who care a sign that some on the other side do too.]
TomBascom
Dec 29, 04, 6:49 pm
Much of what you say makes sense. However -- the failure of US, if it happens, will not make the other legacy carriers stronger. It will fuel the growth of the LCCs and ultimately hasten the demise of those legacy carriers that do not transform themselves.
chicagorich
Dec 29, 04, 7:10 pm
Unfortunately, the majority of the flying public is driven mainly by price, as opposed to many of the denizens here who are likely to lean toward a legacy carrier if their prices are not too much higher and the traveler can garner some perceived benefits for that choice of a legacy carrier (special check in, chance at upgrading, etc).
Problem is that the the FT flyers do not constitute the critical mass necessary to support the legacy carriers as they exist today. So industry evolution is occurring. Painful evolution.....
The steel industry is profitable today for the most part, as opposed to 20 years ago. There are other industries you could use an example, but steel exemplifies the transformation airlines are headed for today.
The big steel companies were felled by smaller, nimbler rivals that were not weighed down with costly union contracts, and legacy pension and health care costs. One by one, those big players were toppled and then ultimately their market shares and some of their assets (and some employees) were gobbled up by the survivors.
So now steel is profitable. But in the wake of that path to profitability lies broken promises, shattered careers and embittered former employees, abandoned mid career by their companies, still feeling betrayed by an employer who left them out in the cold.
The legacy airlines have started down their own path to profitabilty, and like the steel industry, that path will also be littered with the cast offs from their attempts to transform themselves to profitability.
..
Alysia
Dec 30, 04, 7:00 am
Workers Respond, Help Out US Airways
Volunteers Offer Aid at Philadelphia Hub
By Caroline E. Mayer and Amy Joyce
Washington Post Staff Writers
Thursday, December 30, 2004; Page E01
US Airways said yesterday that several hundred employees responded to its call to volunteer at its troubled Philadelphia operations this holiday weekend as the airline braces for another heavy travel period.
Much of what you say makes sense. However -- the failure of US, if it happens, will not make the other legacy carriers stronger. It will fuel the growth of the LCCs and ultimately hasten the demise of those legacy carriers that do not transform themselves.
suddenly removing 5% of the available seatmiles in the national air transport system will surely make an impact. the impact would be bigger in the East, of course.
LCC's probably would benefit from a disproportionate share of abandoned O&D at PHL and CLT, but it's not LCC's that can connect to the mid- and small- type cities sprinkled in the US system. Many of them will pick up links to some other "legacy" carrier's hub. The question mark is how the market shares will play out at US "focus city" airports like DCA, LGA, BOS...
EnvoyBoy
Dec 30, 04, 7:52 am
Workers Respond, Help Out US Airways
Volunteers Offer Aid at Philadelphia Hub
By Caroline E. Mayer and Amy Joyce
Washington Post Staff Writers
Thursday, December 30, 2004; Page E01
US Airways said yesterday that several hundred employees responded to its call to volunteer at its troubled Philadelphia operations this holiday weekend as the airline braces for another heavy travel period.
What a disappointing article. 10% on the volunteers coming in and the balance rehashing the week-old news. This is not what US needs although as a loyal customer I'm heartened by the number of employee volunteers. Makes me feel good about the airline.