Latest US Airways Negotiation/ Bankruptcy News - HERE
Sep 8, 2004, 3:09 pm
#31
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From today's NY Times...
US Air Pilots’ Union Balks at Wage and Benefit Cuts
The leader of a rebel pilot group at US Airways accused the company of demanding too many sacrifices from employees, saying that the airline's request for $295 million in annual wage and benefit cuts from the pilots had "gone from need to greed."
But the airline's chief executive, Bruce R. Lakefield, urged the pilots' union to accept the airline's proposal, arguing that "the price is even higher" if no agreement is reached and US Airways is forced to seek bankruptcy protection.
The deadlock with the pilots is increasing the likelihood that the airline will file for bankruptcy this month, a move that many believe could lead to the airline's liquidation.
Late Monday, leaders of the rebel group blocked a move to have the members of the pilots' union, the Air Line Pilots Association, vote on the latest cuts proposed by the airline even though no agreement had been reached between the pilots' bargaining committee and the company. The chairman of the union's leadership, Bill Pollock, said that there were no talks with the company yesterday and that he did not know "whether and when" talks would resume.
Even so, both sides said they were willing to hold discussions, which industry experts took as a sign that there was still some hope for a deal, though time is running out.
An agreement with the pilots is seen as crucial for the struggling airline to win agreements from its other unions on the wage and benefit cuts of $800 million a year it says are needed to avoid a second bankruptcy filing. US Airways hoped to get the deals in place by Sept. 15, when it is scheduled to make a $110 million payment to its pension plans.
But the pilots' union is deeply divided over whether to grant any more concessions to US Airways, which is based in Arlington, Va. The pilots "are being confronted with this all-or-nothing proposition," said Gary L. Chaison, professor of management at Clark University in Worcester, Mass.
US Airways employees have already accepted two rounds of pay and benefit cuts, collectively worth $1.9 billion, while the airline was in bankruptcy protection. The airline emerged from bankruptcy in April 2003 to find that its costs were still much higher than low-fare rivals like Southwest and JetBlue.
Now, the airline is trying to accomplish what it calls an "extreme makeover" and refashion itself to resemble those carriers, with cuts in labor costs as the linchpin of a $1.5 billion restructuring plan.
US Airways is seeking the largest single portion of the cuts from its pilots, and met almost continuously with their union last week. People who have been briefed on the latest proposal from the company said that it called for a 21 percent cut in wages, and reduced contributions by the company to the pilots' pension plan.
Pensions are a particularly sensitive issue for the pilots. Before US Airways emerged from bankruptcy, the airline terminated the pilots' old retirement plan and replaced it with a less-generous program that combined a traditional pension with a 401(k) savings plan. Senior pilots, many of them based at the airline's hubs in Pittsburgh and Philadelphia, were particularly angered by the change.
On Monday, four members of the union's master executive council who represent pilots in Pittsburgh and Philadelphia voted to keep the company's latest proposal from being presented to the 3,000 union pilots for a vote. The council has 12 members and often makes decisions by a voice vote. But when a roll-call vote is requested, their ballots are weighted according to the number of pilots each member represents. The ballots cast by the four dissenting members - Fred Freshwater and John Brookman, who represent 700 pilots based in Pittsburgh, and Dan Von Bargen and John Crocker, who represent 1,200 Philadelphia pilots - counted for almost two-thirds of the union, outweighing those cast by the eight other members of the council.
Mr. Pollock, in a union statement, said he was "disappointed" by the outcome, because he thought that the company's proposal provided pilots with "protections that might not be available at a later date." He did not elaborate.
Mr. Freshwater said yesterday that he did not oppose all concessions to the airline, but that US Airways had demanded too much.
"I think the company has gone way beyond what they need to ask for," Mr. Freshwater said in an interview. "It's gone from need to greed."
Mr. Freshwater, the chairman of the union's Council 94 in Pittsburgh, said he and his fellow pilots did not think that they were holding the airline hostage by their stance. He noted that the union's negotiators had neither agreed to nor endorsed the company's proposal.
He said that 97 percent of the pilots in Pittsburgh and Philadelphia were against accepting more cuts. "I think the company is playing on the fears of the pilot group, and hopes to have a positive result from it," Mr. Freshwater said.
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Mr. Lakefield, the chief executive of US Airways, said that the airline had originally proposed smaller wage cuts, but in combination with work-rule changes that would have eliminated hundreds of jobs. When the pilots' negotiating team balked, he said, the airline had to seek more savings from the pilots' paychecks instead.
"We do not take lightly the sacrifices you have already made or the fact that all of us must make more," Mr. Lakefield said in a letter sent yesterday to the airline's cockpit crew members. "But we also all know the price is even higher if we simply do nothing." He said the airline was "not prepared to throw in the towel or conclude that we cannot reach an agreement."
A spokesman for US Airways, David Castelveter, stressed the airline's need to meet its financial commitments, including the pension payment and the requirements of the airline's federally guaranteed loans, the basis of its emergence from bankruptcy. US Airways must also satisfy lenders like GE Capital and the regional jet makers Bombardier and Embraer.
Last month, a financial report prepared for the pilots' union by its financial adviser warned that US Airways was in danger of being liquidated if it filed for bankruptcy again, a warning echoed by the airline's chairman, David G. Bronner, who heads the Alabama pension fund that is the airline's biggest shareholder.
Mr. Freshwater said that he thought US Airways had already made up its mind to seek bankruptcy protection, although he acknowledged that it was "not a foregone conclusion."
The pilots and the airline's other workers could end up worse off if that happens, said Robert W. Mann Jr., an industry consultant based in Port Washington, N.Y.
Mr. Mann said that any bankruptcy judge would look for evidence that the company had tried to solve its financial crisis before deciding whether to allow US Airways to terminate its labor agreements and replace them with less-generous contracts. "US Airways might come in and say, 'We were expecting the pilots to lead, and they did - right over the edge,' " Mr. Mann said.
Professor Chaison said some rhetoric from the union leaders was meant to persuade members that they were fighting hard. "This is the ultimate in hardball," he said. "It doesn't get any worse than this."
The leader of a rebel pilot group at US Airways accused the company of demanding too many sacrifices from employees, saying that the airline's request for $295 million in annual wage and benefit cuts from the pilots had "gone from need to greed."
But the airline's chief executive, Bruce R. Lakefield, urged the pilots' union to accept the airline's proposal, arguing that "the price is even higher" if no agreement is reached and US Airways is forced to seek bankruptcy protection.
The deadlock with the pilots is increasing the likelihood that the airline will file for bankruptcy this month, a move that many believe could lead to the airline's liquidation.
Late Monday, leaders of the rebel group blocked a move to have the members of the pilots' union, the Air Line Pilots Association, vote on the latest cuts proposed by the airline even though no agreement had been reached between the pilots' bargaining committee and the company. The chairman of the union's leadership, Bill Pollock, said that there were no talks with the company yesterday and that he did not know "whether and when" talks would resume.
Even so, both sides said they were willing to hold discussions, which industry experts took as a sign that there was still some hope for a deal, though time is running out.
An agreement with the pilots is seen as crucial for the struggling airline to win agreements from its other unions on the wage and benefit cuts of $800 million a year it says are needed to avoid a second bankruptcy filing. US Airways hoped to get the deals in place by Sept. 15, when it is scheduled to make a $110 million payment to its pension plans.
But the pilots' union is deeply divided over whether to grant any more concessions to US Airways, which is based in Arlington, Va. The pilots "are being confronted with this all-or-nothing proposition," said Gary L. Chaison, professor of management at Clark University in Worcester, Mass.
US Airways employees have already accepted two rounds of pay and benefit cuts, collectively worth $1.9 billion, while the airline was in bankruptcy protection. The airline emerged from bankruptcy in April 2003 to find that its costs were still much higher than low-fare rivals like Southwest and JetBlue.
Now, the airline is trying to accomplish what it calls an "extreme makeover" and refashion itself to resemble those carriers, with cuts in labor costs as the linchpin of a $1.5 billion restructuring plan.
US Airways is seeking the largest single portion of the cuts from its pilots, and met almost continuously with their union last week. People who have been briefed on the latest proposal from the company said that it called for a 21 percent cut in wages, and reduced contributions by the company to the pilots' pension plan.
Pensions are a particularly sensitive issue for the pilots. Before US Airways emerged from bankruptcy, the airline terminated the pilots' old retirement plan and replaced it with a less-generous program that combined a traditional pension with a 401(k) savings plan. Senior pilots, many of them based at the airline's hubs in Pittsburgh and Philadelphia, were particularly angered by the change.
On Monday, four members of the union's master executive council who represent pilots in Pittsburgh and Philadelphia voted to keep the company's latest proposal from being presented to the 3,000 union pilots for a vote. The council has 12 members and often makes decisions by a voice vote. But when a roll-call vote is requested, their ballots are weighted according to the number of pilots each member represents. The ballots cast by the four dissenting members - Fred Freshwater and John Brookman, who represent 700 pilots based in Pittsburgh, and Dan Von Bargen and John Crocker, who represent 1,200 Philadelphia pilots - counted for almost two-thirds of the union, outweighing those cast by the eight other members of the council.
Mr. Pollock, in a union statement, said he was "disappointed" by the outcome, because he thought that the company's proposal provided pilots with "protections that might not be available at a later date." He did not elaborate.
Mr. Freshwater said yesterday that he did not oppose all concessions to the airline, but that US Airways had demanded too much.
"I think the company has gone way beyond what they need to ask for," Mr. Freshwater said in an interview. "It's gone from need to greed."
Mr. Freshwater, the chairman of the union's Council 94 in Pittsburgh, said he and his fellow pilots did not think that they were holding the airline hostage by their stance. He noted that the union's negotiators had neither agreed to nor endorsed the company's proposal.
He said that 97 percent of the pilots in Pittsburgh and Philadelphia were against accepting more cuts. "I think the company is playing on the fears of the pilot group, and hopes to have a positive result from it," Mr. Freshwater said.
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Mr. Lakefield, the chief executive of US Airways, said that the airline had originally proposed smaller wage cuts, but in combination with work-rule changes that would have eliminated hundreds of jobs. When the pilots' negotiating team balked, he said, the airline had to seek more savings from the pilots' paychecks instead.
"We do not take lightly the sacrifices you have already made or the fact that all of us must make more," Mr. Lakefield said in a letter sent yesterday to the airline's cockpit crew members. "But we also all know the price is even higher if we simply do nothing." He said the airline was "not prepared to throw in the towel or conclude that we cannot reach an agreement."
A spokesman for US Airways, David Castelveter, stressed the airline's need to meet its financial commitments, including the pension payment and the requirements of the airline's federally guaranteed loans, the basis of its emergence from bankruptcy. US Airways must also satisfy lenders like GE Capital and the regional jet makers Bombardier and Embraer.
Last month, a financial report prepared for the pilots' union by its financial adviser warned that US Airways was in danger of being liquidated if it filed for bankruptcy again, a warning echoed by the airline's chairman, David G. Bronner, who heads the Alabama pension fund that is the airline's biggest shareholder.
Mr. Freshwater said that he thought US Airways had already made up its mind to seek bankruptcy protection, although he acknowledged that it was "not a foregone conclusion."
The pilots and the airline's other workers could end up worse off if that happens, said Robert W. Mann Jr., an industry consultant based in Port Washington, N.Y.
Mr. Mann said that any bankruptcy judge would look for evidence that the company had tried to solve its financial crisis before deciding whether to allow US Airways to terminate its labor agreements and replace them with less-generous contracts. "US Airways might come in and say, 'We were expecting the pilots to lead, and they did - right over the edge,' " Mr. Mann said.
Professor Chaison said some rhetoric from the union leaders was meant to persuade members that they were fighting hard. "This is the ultimate in hardball," he said. "It doesn't get any worse than this."
Sep 8, 2004, 4:14 pm
#32
Join Date: Jul 2004
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http://kdka.com/local/localnewspitt_...252160219.html
Sep 8, 2004 3:54 pm US/Eastern
Pittsburgh (KDKA) With cash running short and a critical pension payment deadline just a week away, some say US Airways could be headed for a second bankruptcy filing.
In fact, some union officials think it could come as early as next week.
For months, US Airways has warned that it would file for Chapter 11 by September 30th if its employees would not agree to another round of pay and benefit cuts.
Now that prospect appears even more imminent.
To avoid bankruptcy, the airline says it needs another $800 million in pay and benefit cuts from its employees -- with the largest amount coming from the pilots.
Earlier this week, the leaders of the airline pilots union -- in a split vote -- decided not to let its 3,000 pilots vote on the airline's latest cost-cutting plan. The plan would cut pilots' pay by another 21-percent and cut US Airways' contribution to pilots' retirement by 50-percent.
Captain Fred Freshwater, who represents Pittsburgh area pilots, says the airline is asking too much.
Coupled with earlier give-backs, Freshwater says pilot pay and benefits would be cut in half -- which he doesn't believe is necessary for the airline's survival.
"I don't buy that -- the airline has to increase its concentration on the revenue side of the equation." -- Capt. Fred Freshwater, US Airways Pilots Union
To do so, the airline would have to attract more passengers -- which isn't easy when flights are cut back.
The airline wants its plan put to a vote among all pilots -- even if the union leadership opposes it; but Freshwater says that won't happen. .
"I hope the company gives us a proposal that we can at least hold our nose and swallow and then send out to the pilot group." -- Capt. Fred Freshwater, US Airways Pilots Union
Now Freshwater's position -- which is shared by his union counterparts in Philadelphia -- has opposition within the union. The chairman of the union's executive committee, for example, wants the airline pay cut package put to a vote among all pilots.
Watch KDKA-TV for the latest details
Sep 8, 2004 3:54 pm US/Eastern
Pittsburgh (KDKA) With cash running short and a critical pension payment deadline just a week away, some say US Airways could be headed for a second bankruptcy filing.
In fact, some union officials think it could come as early as next week.
For months, US Airways has warned that it would file for Chapter 11 by September 30th if its employees would not agree to another round of pay and benefit cuts.
Now that prospect appears even more imminent.
To avoid bankruptcy, the airline says it needs another $800 million in pay and benefit cuts from its employees -- with the largest amount coming from the pilots.
Earlier this week, the leaders of the airline pilots union -- in a split vote -- decided not to let its 3,000 pilots vote on the airline's latest cost-cutting plan. The plan would cut pilots' pay by another 21-percent and cut US Airways' contribution to pilots' retirement by 50-percent.
Captain Fred Freshwater, who represents Pittsburgh area pilots, says the airline is asking too much.
Coupled with earlier give-backs, Freshwater says pilot pay and benefits would be cut in half -- which he doesn't believe is necessary for the airline's survival.
"I don't buy that -- the airline has to increase its concentration on the revenue side of the equation." -- Capt. Fred Freshwater, US Airways Pilots Union
To do so, the airline would have to attract more passengers -- which isn't easy when flights are cut back.
The airline wants its plan put to a vote among all pilots -- even if the union leadership opposes it; but Freshwater says that won't happen. .
"I hope the company gives us a proposal that we can at least hold our nose and swallow and then send out to the pilot group." -- Capt. Fred Freshwater, US Airways Pilots Union
Now Freshwater's position -- which is shared by his union counterparts in Philadelphia -- has opposition within the union. The chairman of the union's executive committee, for example, wants the airline pay cut package put to a vote among all pilots.
Watch KDKA-TV for the latest details
Sep 8, 2004, 4:18 pm
#33
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I'm just not so sure that Ch11 will be the end for US. Remember, in Ch11 things can be different. Although the airline itself cannot directly dissolve employees' contracts (Eastern Airlines), it can petition a bankruptcy judge to do so. If a bankruptcy judge sees it necessary to cut employee wages to keep the company operating, he can do so. So my question is- would it be easier for US to cut employee pay/benefits while in bankruptcy? The only problem with the filing though is that since the loan guarantee had already faulted, could the loan be reinstated??
Sep 8, 2004, 5:34 pm
#34
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The problem is, even with another Ch 11 filing, I can't see a scenario where USAir has a way out: They are being bombarded in PHL by Southwest, who keeps adding to their PHL flight schedules every month. There are rumors that Southwest will enter PIT. Their cost structure is so high that even after another filing, they will be losing money, and I can't imagine that ANYONE will offer them financing at less than usury rates. The shareholders have been wiped out twice in 2 years.
I would also add that in a second bankruptcy, they will find that award redemptions will increase (their passengers may be loyal, but they're not all stupid). With the combination of industry-wide low fares and a higher award redemption rate than the competition, they will be yielding less per flight than they were before, adding to their woes.
Would you offer USAir a 5-year loan at less than 15-20%? If so, you should give them a call.
I believe that they will walk into Chapter 11, but come out in a hearse.
I would also add that in a second bankruptcy, they will find that award redemptions will increase (their passengers may be loyal, but they're not all stupid). With the combination of industry-wide low fares and a higher award redemption rate than the competition, they will be yielding less per flight than they were before, adding to their woes.
Would you offer USAir a 5-year loan at less than 15-20%? If so, you should give them a call.
I believe that they will walk into Chapter 11, but come out in a hearse.
Last edited by Tino; Sep 8, 2004 at 5:43 pm
Sep 8, 2004, 5:37 pm
#35
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The pilots are grossly misguided here - they are not voting just for their salaries. If the airline liquidates, they lose their pensions completely.
Another case of union management putting employees out on the street. Let them vote on it and then play the blame game.
Another case of union management putting employees out on the street. Let them vote on it and then play the blame game.
Sep 8, 2004, 5:53 pm
#36
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Originally Posted by Tino
The pilots are grossly misguided here - they are not voting just for their salaries. If the airline liquidates, they lose their pensions completely.
Another case of union management putting employees out on the street. Let them vote on it and then play the blame game.
Another case of union management putting employees out on the street. Let them vote on it and then play the blame game.
The few pilots I have spoken to are extremely displeased with their representatives. They want a chance to vote, and I think the plan would pass without the PA-based reps "roll call veto".
Sep 8, 2004, 7:06 pm
#37
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The PBGC can't cover additional frozen pensions because the PBGC is in massive debt itself with a bottom-less pit of obligations itself. US pilots might get 30 cents on the dollar after all the penalties are paid if US liquidates its pension within bankruptcy. All of the airline pensions that are and will be dumped on the PBGC will take a massive federal government bailout if that is the intent of Congress. So much so that it makes the ATSB budget look like chump change.
This is not unique to the airline industry though. The number of companies offering DB plans have shrunk by nearly 80% over the last 20 years. I can go on and on, but the blame lies not just on "greedy" corporations but the Congress has taken a pass on comprehensive DB reform that has made retaining these plans even less attractive to even companies that are in good shape.
This is not unique to the airline industry though. The number of companies offering DB plans have shrunk by nearly 80% over the last 20 years. I can go on and on, but the blame lies not just on "greedy" corporations but the Congress has taken a pass on comprehensive DB reform that has made retaining these plans even less attractive to even companies that are in good shape.
Last edited by NeoOfTheCRS; Sep 9, 2004 at 1:31 am Reason: The pilots have already lost their pension plans it is the AFA pension that is underfunded
Sep 8, 2004, 7:16 pm
#38
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I've also heard the 30 cents/dollar figure kicked around.
That's what I was trying to say. The pilots are asking to give up say, $50K a year, but if the airline liquidates, a senior pilot might lose the equivalent value of a million-dollar pension.
That's what I was trying to say. The pilots are asking to give up say, $50K a year, but if the airline liquidates, a senior pilot might lose the equivalent value of a million-dollar pension.
Sep 8, 2004, 8:09 pm
#39
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I'll leave it to others to discuss the likely amount of coverage by the PBGC, but I couldn't let
go without reply.
they lose their pensions completely
Sep 8, 2004, 8:30 pm
#40
Join Date: Jun 2003
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No Brainer
Originally Posted by CPRich
I'll leave it to others to discuss the likely amount of coverage by the PBGC, but I couldn't let go without reply.
I think this is a no brainer for the union rank-in-file (not just the pilot union, but all the US unions). Cooperate with management and keep your job OR stick to your guns, lose your job when US files and liquidates, and then take lowest seniority with other airlines OR work at Wal-Mart or asking customers "Would you like fries with that?". Given the options, a job flying planes is better than the alternatives.
From talking to some of the US help in SFO this past weekend, it sounds like they want to keep jobs no matter what, as it's better than the alternatives. One supervisor told me she couldn't afford to take a job in teaching (she was certified to teach school) as it paid less than her job with the airline. She agreed, even with concessions, job was better than no job... and it sounded like that was the concensus of her fellow employees.
So, it sounds like the situation with the unions can be summed up by Larry the Cable Guy... "Git 'er done".
Sep 8, 2004, 8:48 pm
#41
Join Date: Apr 2004
Posts: 231
Originally Posted by steves
I am sorry, but Ginandtacos has it wrong. No one is blaming labor, but the reality of buisness is that the other carriers have lower cost in pensions, salary, and work rules. It is good, NOT BAD management that recognises what the competition is doing and tries to compete on a level playing field. Where did you go to buisness school?
Apparently I went to one where they don't teach that the airline agreeing to a financially disadventageous contract with its employees is the fault of the employee union.
It's good management to try to level the playing field created by their own bad management? Right.
Funny how every time an employer ends up with an adventageous wage agreement it's "sorry, a contract is a contract" but when the shoe is on the other foot, the employees are supposed to concede.
My name's Ed, BTW. Nice to meet you.
Sep 8, 2004, 8:53 pm
#42
Join Date: Apr 2004
Posts: 231
Originally Posted by Tino
I've also heard the 30 cents/dollar figure kicked around.
That's what I was trying to say. The pilots are asking to give up say, $50K a year, but if the airline liquidates, a senior pilot might lose the equivalent value of a million-dollar pension.
That's what I was trying to say. The pilots are asking to give up say, $50K a year, but if the airline liquidates, a senior pilot might lose the equivalent value of a million-dollar pension.
This company is hemmoraging red ink. The pilots could agree to work for free and that wouldn't alter the fact that the airline is not going to last. 9/30/04 may be the end of the line, concessions or no concessions.
In case I'm coming off like a basher here, I'd like to point out that I fly US regularly and enjoy their service very much. The company financial situation is just too dire for them to overcome with their current business plan. There's a very good reason that everyone on Wall St is predicting their demise...because it's probably true.
Operating 3 hubs - all extremely close to one another - is just an awful model, and WN's entry into Philly was a nail in the coffin.
Sep 8, 2004, 10:52 pm
#43
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Originally Posted by ginandtacos.com
You're still making a fundamental assumption that does not appear to be accurate - that making concessions will result in continued employment.
Making concessions will increase the probability of continued employment.
Sep 8, 2004, 11:26 pm
#44
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http://www.post-gazette.com/pg/04253/375813.stm
US Airways pilots hoping for last-minute agreement
Thursday, September 09, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette
As US Airways slides toward its second bankruptcy in two years, some pilots are clinging to the hope of a last-minute concessionary deal, claiming it can still be accomplished with a new set of negotiations or intervention from national union officers.
"I am confident some kind of deal is going to be reached before this thing goes into bankruptcy," Charlotte, N.C., union representative Lance Svendsen said yesterday.
The union, controlled by four Pennsylvania representatives who represent more than 50 percent of all pilots, declined Monday to send the company's latest $295 million cost-cutting proposal out for a ratification vote among US Airways' 3,000 pilots.
That move set off a new round of speculation about an inevitable bankruptcy for the nation's seventh-largest carrier, which faces several financial hurdles this month that it may not be able to leap without worker concessions.
One scenario envisioned by some pilots has the national Air Line Pilots Association (ALPA) in Washington, D.C., stripping leaders of its local union at US Airways of their bargaining rights and sending out the company's last proposal for a membership vote.
Such a move would bypass the four Pennsylvania representatives who blocked the proposal Monday.
"I think that is the only shot we have left," Svendsen said yesterday. "This is about survival, and the wolf is at the door. And things are going to tumble out of control shortly."
Svendsen contends that national union officers contacted US Airways pilots chairman Bill Pollock last week, and Svendsen said he believes that an ALPA intervention "is something they are discussing."
But others dismissed that option yesterday.
Kelly Ison, a former US Airways pilot who was involved in contract negotiations during the company's last bankruptcy, said any intervention by national ALPA would be a "very drastic last-ditch maneuver, and it would only occur after there were no other options left, if at all."
An ALPA spokesman also said he was "not aware" of any discussions about intervening, and noted that the national union "stays pretty hands off" unless asked to get involved.
Jack Stephan, spokesman for the US Airways pilots union, agreed, and said he had heard nothing about possible intervention by the national union. He said Pollock told union leaders on Monday that as union chairman he would not look for other ways to get the proposal out if the Pennsylvania representatives blocked it.
Pollock could not be reached for comment yesterday.
While US Airways Chief Executive Officer Bruce Lakefield on Tuesday held the door open to further pilot negotiations, Stephan provided a more pessimistic outlook yesterday, saying union negotiators did not have any more room to bargain and that the company's last proposal -- containing a 23 percent pay cut and a 50 percent cut in the company's retirement plan contributions -- is as good as it is going to get.
Pittsburgh union representative John Brookman, one of four who blocked the proposal Monday, countered that he believed that there was still room to negotiate and that "negotiations are not done until everybody says they are done. I have not heard anybody say that."
Brookman contended that head union negotiator Doug Mowery called company negotiator Bruce Ashby late Monday evening and told Ashby he was ready to meet again. And US Airways spokesman David Castelveter said yesterday that the company stood "ready to talk to them."
But he noted no formal talks were under way, and that time "is running out."
US Airways pilots hoping for last-minute agreement
Thursday, September 09, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette
As US Airways slides toward its second bankruptcy in two years, some pilots are clinging to the hope of a last-minute concessionary deal, claiming it can still be accomplished with a new set of negotiations or intervention from national union officers.
"I am confident some kind of deal is going to be reached before this thing goes into bankruptcy," Charlotte, N.C., union representative Lance Svendsen said yesterday.
The union, controlled by four Pennsylvania representatives who represent more than 50 percent of all pilots, declined Monday to send the company's latest $295 million cost-cutting proposal out for a ratification vote among US Airways' 3,000 pilots.
That move set off a new round of speculation about an inevitable bankruptcy for the nation's seventh-largest carrier, which faces several financial hurdles this month that it may not be able to leap without worker concessions.
One scenario envisioned by some pilots has the national Air Line Pilots Association (ALPA) in Washington, D.C., stripping leaders of its local union at US Airways of their bargaining rights and sending out the company's last proposal for a membership vote.
Such a move would bypass the four Pennsylvania representatives who blocked the proposal Monday.
"I think that is the only shot we have left," Svendsen said yesterday. "This is about survival, and the wolf is at the door. And things are going to tumble out of control shortly."
Svendsen contends that national union officers contacted US Airways pilots chairman Bill Pollock last week, and Svendsen said he believes that an ALPA intervention "is something they are discussing."
But others dismissed that option yesterday.
Kelly Ison, a former US Airways pilot who was involved in contract negotiations during the company's last bankruptcy, said any intervention by national ALPA would be a "very drastic last-ditch maneuver, and it would only occur after there were no other options left, if at all."
An ALPA spokesman also said he was "not aware" of any discussions about intervening, and noted that the national union "stays pretty hands off" unless asked to get involved.
Jack Stephan, spokesman for the US Airways pilots union, agreed, and said he had heard nothing about possible intervention by the national union. He said Pollock told union leaders on Monday that as union chairman he would not look for other ways to get the proposal out if the Pennsylvania representatives blocked it.
Pollock could not be reached for comment yesterday.
While US Airways Chief Executive Officer Bruce Lakefield on Tuesday held the door open to further pilot negotiations, Stephan provided a more pessimistic outlook yesterday, saying union negotiators did not have any more room to bargain and that the company's last proposal -- containing a 23 percent pay cut and a 50 percent cut in the company's retirement plan contributions -- is as good as it is going to get.
Pittsburgh union representative John Brookman, one of four who blocked the proposal Monday, countered that he believed that there was still room to negotiate and that "negotiations are not done until everybody says they are done. I have not heard anybody say that."
Brookman contended that head union negotiator Doug Mowery called company negotiator Bruce Ashby late Monday evening and told Ashby he was ready to meet again. And US Airways spokesman David Castelveter said yesterday that the company stood "ready to talk to them."
But he noted no formal talks were under way, and that time "is running out."
Sep 9, 2004, 1:39 am
#45
Join Date: Jun 2003
Location: ATL
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Posts: 2,582
Agree. Strongly. The employees have the most to lose with a US liquidation.
With these 4 guys, it is no longer about what is best for their members or even giving their members a choice in their future. . .its gotten personal and they are going to take everyone down with them. . .its shameful
With these 4 guys, it is no longer about what is best for their members or even giving their members a choice in their future. . .its gotten personal and they are going to take everyone down with them. . .its shameful
Originally Posted by jimcfsus
Same here, CPRich. I've been silent until now waiting to see what would happen, but... These 4 PA bozos in the pilot's union need to have their heads examined from all of the stories posted in the media on how they've represented the pilots.
I think this is a no brainer for the union rank-in-file (not just the pilot union, but all the US unions). Cooperate with management and keep your job OR stick to your guns, lose your job when US files and liquidates, and then take lowest seniority with other airlines OR work at Wal-Mart or asking customers "Would you like fries with that?". Given the options, a job flying planes is better than the alternatives.
From talking to some of the US help in SFO this past weekend, it sounds like they want to keep jobs no matter what, as it's better than the alternatives. One supervisor told me she couldn't afford to take a job in teaching (she was certified to teach school) as it paid less than her job with the airline. She agreed, even with concessions, job was better than no job... and it sounded like that was the concensus of her fellow employees.
So, it sounds like the situation with the unions can be summed up by Larry the Cable Guy... "Git 'er done".
I think this is a no brainer for the union rank-in-file (not just the pilot union, but all the US unions). Cooperate with management and keep your job OR stick to your guns, lose your job when US files and liquidates, and then take lowest seniority with other airlines OR work at Wal-Mart or asking customers "Would you like fries with that?". Given the options, a job flying planes is better than the alternatives.
From talking to some of the US help in SFO this past weekend, it sounds like they want to keep jobs no matter what, as it's better than the alternatives. One supervisor told me she couldn't afford to take a job in teaching (she was certified to teach school) as it paid less than her job with the airline. She agreed, even with concessions, job was better than no job... and it sounded like that was the concensus of her fellow employees.
So, it sounds like the situation with the unions can be summed up by Larry the Cable Guy... "Git 'er done".