Significant Layoffs

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On 1/2/2003 10:13:58 AM UnitedChicago wrote:

B.N.:

I was directly responding to G4G5's scenario of a mechanic that is sick of working outside in the cold, etc. and that there are many jobs open to the mechanics.

I'm certainly not applying that to people who enjoy their jobs.
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You are missing the point, again. Why leave now?

Correct me if I am wrong but they have not agreed to wage concessions, so their pay checks are still the same. So why leave a job that you are happy doing for the same money you were making? in their world nothing has changed, so nobody is leaving, yet.

What they are saying is:
They are not going to do it for 13%+ less, loss of jobs and harsher work rules. Zippo for all the ESOP and give backs.

At that point you say, "no" and you take it to court. You spend as much time possible tying things up, until mgt either says forget it, we need to move on to something productive(like revenue), otherwise they can forget the DIP projections. Mgt needs to make nice with the A&P's.

If mgt decides they want to go after the IAM. Well, at that point forget it, the time to the DIP triggers will be upon us. The IAM leadership has already said no to the cuts, not once but twice(now and for the ATSB loan). Unless their is an IAM leadership change the current group of folks is not about to change their tune. So now you have adversary's working against each other, with a DIP gun held to their head.

The IAM digs it heals in. Around this time mgt decides that they will implement the court ordered wage cuts and start with the down sizing, closing of bases and layoffs all while they farm out the former IAM job's. The IAM counters with law suits, job actions, sick outs and strikes. If you are old enough to have been around for Eastern you can see where this is going to go.

The big difference between USAir and UAL is that the IAM decided that they want to be part of the recovery. You ask, why? IMHO it's because of the maintenance base locations(where the voting majority resides). They fully realize that in this economy they will have a difficult time replacing jobs in PIT and CLT(not impossible). UAL techs/the IAM on the otherhand dont feel that finding jobs of equal value in all of the high cost of living locations that UAL does it maintenance, will be a problem. Finding a large number of 60K jobs in PIT is harder then finding a large number in SFO/OAK/SJC. On the other hand cost of living is less in PIT/CLT so those folks, while they feel the pain, don't feel it quite to the extent that someone trying to get by in SFO/ORD does. Subequently they are more likly to accept a concessionary deal. The other thing the IAM realizes is that some airline will aquire the UAL assets and that the hanger and routes, will not go vacant and un used. While USAir has some valuable assets they are hardly the equal of UAL's. That will bring IAM jobs back to SFO/ORD, you can't say the same for PIT.

The problem with BK and the aviation industry is, it's the BK courts job to spread the pain around evenly. When in fact we all realize that the various groups within the airline are not of equal power. They are not equal stake holders. The FA's don't take part in ESOP but the IAM see's them giving back the same level of concessions. The pilots career projections are dependant upon UAL's survival, the IAM's is not. Why was their ESOP in the first place and who contributed and why?

IMHO, the other stake holders are going to have to pick up the financial slack because their livlyhoods depend on it, the tech's does not. Having seen this happen once already the other unions would be wise to have a plan to help UAL mgt come up with the additional concessions, in exchange for a greater piece of the recovery.
 
G4G5:

You state

"At that point you say, "no" and you take it to court. You spend as much time possible tying things up, until mgt either says forget it, we need to move on to something productive(like revenue), otherwise they can forget the DIP projections."

I hate to break it to you, but if you all follow your above advice, you could very well be the reason for a CH7.

How would that make you feel?

Leave now - either way you'll not be making your current wages much longer. We're talking another week at the most.

Leave now and take you descructive attitude to some new employer.
 
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On 1/4/2003 11:12:43 AM UnitedChicago wrote:

G4G5:

You state

"At that point you say, "no" and you take it to court. You spend as much time possible tying things up, until mgt either says forget it, we need to move on to something productive(like revenue), otherwise they can forget the DIP projections."

I hate to break it to you, but if you all follow your above advice, you could very well be the reason for a CH7.

How would that make you feel?

Leave now - either way you'll not be making your current wages much longer. We're talking another week at the most.

Leave now and take you descructive attitude to some new employer.
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Again, why?

The wages are the same, nothing has changed. If mgt can't prove that they have opened the books and negotiated in good faith, then the wages stay the same. The judge has no choice, the law is clear about the reqirement to negotiate in good faith. We both know UAL has not done this. The period of negotiation does not begin with the ATSB loan process. The BK court only need to look at the effort made by mgt, post bk filing. Tilton is the one who signed off on the DIP financing schedule, not the unions. If it was such an emergency, then why not file ch11 eariler and give yourself the time and cash necessary to properly negotiate. Try to remember that UAL mgt has set and agreed to the time frame for the recovery, not the IAM. Do you have some factual proof that say's the IAM wages will change by next week? My guess is that we will get a real feel for whose side the judge is on, next week. IMHO the IAM has the cash to hire lawyers equal to or better then what UAL can afford, so this should be interesting.

If UAL mgt can't handle a BK filing properly what chance do they really have? Wasn't Tilton scheduled to be on a plane out to SFO to talk to the IAM the day that the ATSB ruling came down? Anyone with their pulse on the industry, like the CEO of the #2 carrier, would have known about this. How about the need to hire McKinsey and company? The NY Times asked the question, nobody hires these folks for a post BK consultant, you only hire them when you havn't got a clue what to do to fix the problem. Have you ever seen so many big dollar consultants on the pay role? Tilton was handed a bag of crap and he is scrambling for anything.

What you fail to realize is that these folks are pissed. To the point of "screw you" pissed. They were willing to give the last time UAL was on hard time, in the 80's. They contributed during ESOP when all the other major mechanics took home the money.

And what do they have to show for it? And you want them to work for what?

In all honesty if mgt keeps up their course do you think that every unhappy IAM member will just walk away or will they sink the ship? So why do you keep saying "leave now". These folks have/had a vested interest in UAL and if mgt backs off then things will be fine. If not I would suggest to you that revenge is a direction they may choose. Why leave now when I can screw the mgt that screwed me? CEO is a title not a name, your missing the boat if you think that folks will just turn in their papers tomorrow. "Be distructive to a new employer", I don't think so, these are good people who either want industry standard wages or a pound of flesh for their losses. To just thik that employee concessions will fix the problem and the ones not willing to give should leave, is absurd.

Again, if the other stake holders want to see UAL survive, they need to group together and come up with a package for more concessions in trade for a greater stake in the recovery, stock options an extra seat on the board, whatever. All mgt has to do is leave the IAM alone and reward the folks who help save UAL.

Remember last week when the Alabama pension benefit, Lorenzo/Icahn impersonator, told the unions to come up with an additional $200 mill or he would file ch7? He published it in the NY Times on a Saturday and by Monday the USAir pilots had over half, $101 million for him. They didn't like it but that is very similar to what needs to happen here. The clock is ticking on the DIP schedule. The FA's for the first time need to become stake holders (like the IAM once was). The pilots unfortunatly will take the hit in the wallet. If these groups take the attitude that we gave already, it's the IAM's turn. Then it's over.

Don't get me wrong, I hope they turn it around but it's going to take some creative thinkers who what to see it fixed. The ones with the most to lose(not the IAM).

Good day.
 
G4G5:

You are going around in circles.

-"The wages are the same, nothing has changed. If mgt can't prove that they have opened the books and negotiated in good faith, then the wages stay the same. The judge has no choice, the law is clear about the reqirement to negotiate in good faith. We both know UAL has not done this.

ACTUALLY, I don't know that management has not negotiated in good faith. How do you know? Where you there? Why has the other 4 unions agreed to take temporary cuts if they felt it wasn't negotiated in good faith?

-"The BK court only need to look at the effort made by mgt, post bk filing."

Do you think that the high priced lawyers that UA has leading them through the legal process would have let UA file the motion to impose wages unless they felt that UA did everything within the law? I think not. I know you'll disagree.

-"Tilton is the one who signed off on the DIP financing schedule, not the unions."

Wrong again. The UAL Board of Directors - INCLUDING REPRESENTATIVES of ALPA and IAM - signed off on the DIP. The BOD voted unanimously to file CH11 - including representatives of ALPA and IAM.

Now I don't know for a fact that these two union representatives knew the details of the DIP financing as I was not in the room - but I would be willing to bet money that they did. How couldn't a BOD member not know the terms of DIP? That is there responsibility as a BOD member. That's a big factor in CH11 - again ALPA and IAM voted yes to file.

-"If it was such an emergency, then why not file ch11 eariler and give yourself the time and cash necessary to properly negotiate."

I agree they should have filed earlier. But I don't think your union would have supported that. Tilton gave you guys the opportunity to give it your best to stay out of BK. You should appreciate that. Many other CEO's would have said screw you and filed back in August when the unions turned their noses up at the $9 Billion per year request.
 
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On 12/30/2002 9:56:45 PM BOBO BENKINS wrote:

The Wall street journal is reporting that UAL has warned it's employees to prepare for significant layoffs to be announced in the next few weeks. Good luck to all.
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Maybe too little,too late***layoffs should have been in place**a year ago**under the lameduck CEO Creighton****
UAL has lost millions of dollars because of the delays in
manpower reduction**however; I, for one remain optimistic
about UAL under Tilton's direction**JMHO
 
G4G5:

In terms of the paycuts - I have no proof - never said that I did. It's my opinion that the BK judge will approve the imposed wages. Just my opinon.

Bottom line, we'll never agree on these points. So let's just move on and see what happens.

I know we both agree on the desire the see United emerge successfully.

Have a good one.
 
UnitedChicago wrote:


ACTUALLY, I don't know that management has not negotiated in good faith. How do you know? Where you there? Why has the other 4 unions agreed to take temporary cuts if they felt it wasn't negotiated in good faith?


G4G5
ACTUALLY, the IAM never agreed to the ATSB concessions! The concessions that are taking effect are the one that were previously agreed upon. So I never had to be their. So what about you statement, about pay cuts next week. I am still waiting for your proof.
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Do you think that the high priced lawyers that UA has leading them through the legal process would have let UA file the motion to impose wages unless they felt that UA did everything within the law? I think not. I know you'll disagree.

G4G5
Stop and think for a second. Their high priced lawyers advised them that if they didn't start the process NOW they would never meet the DIP restrictions. So to answer your question, their lawyers told them they had NO choice but to start the process NOW. Do you disagree? With or without the consent of the IAM and that's where the problem is! They waited to long and now they expect everyone to just take this unproven mgt team at it word.
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Wrong again. The UAL Board of Directors - INCLUDING REPRESENTATIVES of ALPA and IAM - signed off on the DIP. The BOD voted unanimously to file CH11 - including representatives of ALPA and IAM.

G4G5
The IAM representative can not declare the BK. So when forced to accept the DIP or CH7, what would you do? UAL mgt left the BOD NO choice but to vote yes. The IAM was fully aware, as was the BOD that the IAM members were not going to approve the concessions(see ATSB loan). It didn't matter what the IAM BOD member voted. Do you think differently?

But a vote of No would have signaled to all that they were not willing to help. Not exactly the message that they were trying to send to the BK judge. Humm........
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Now I don't know for a fact that these two union representatives knew the details of the DIP financing as I was not in the room - but I would be willing to bet money that they did. How couldn't a BOD member not know the terms of DIP? That is there responsibility as a BOD member. That's a big factor in CH11 - again ALPA and IAM voted yes to file.

G4G5
Again the terms did not matter,by the time UAL mgt figured out that they needed to declare the BK, it was too late. What other DIP offers were presented to the BOD? Only ONE! So when given the current DIP financing to vote on or NOTHING, what would you do?
 
UnitedChicago wrote:

In terms of the paycuts - I have no proof - never said that I did.

G4G5
Really, never did? And I quote:
"Leave now - either way you'll not be making your current wages much longer. We're talking another week at the most."
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It's my opinion that the BK judge will approve the imposed wages. Just my opinon.

G4G5
I agree, IMHO the judge will agree on the cuts for all the unions EXCEPT the IAM.
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Bottom line, we'll never agree on these points. So let's just move on and see what happens.

Agreed............
 
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On 1/5/2003 9:14:57 PM UnitedChicago wrote:

G4G5:

Oh come on...I was trying to put this to bed in a nice way. Why the need to make absurd response claims?

You wrote:

"Really, never did? And I quote:
Leave now - either way you'll not be making your current wages much longer. We're talking another week at the most."

Your statement was in response to my statement "In terms of the paycuts - I have no proof - never said that I did."

So you think my other statement "Leave now - either way you'll not be making your current wages much longer. We're talking another week at the most." illustrates that I had proof? I have readily said that that statement was my opinion. You think that's your smoking gun? That's so absurd.

We are not agruing on the same level here...that's why I put this to bed.

Take care

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Your right we aren't.

I would NEVER make a statement effecting 30,000+ IAM member but you did. Saying someting as stupid as, you have a week left at you current pay rates is truly ABSURD.

What's even more ABSURD is that you spent the time to offend 30,000+ people with not evidence, nothing more then your opnion. Proof, Smoking gun, I don't need one, with your opnion alone, you managed to offend 1/3 the UAL workforce. You can put any spin on it that you want but the next time you want to support UAL try not to alienate 30% of the employees. Even joking about a pay reduction next week is truly ABSURD.

You are right we are not arguing on the same level, I would not even joke about something a sensitive as someones pay.

Please go to bed and sleep on your pathetic comment.
 
G4G5:

Oh come on...I was trying to put this to bed in a nice way. Why the need to make absurd response claims?

You wrote:

"Really, never did? And I quote:
Leave now - either way you'll not be making your current wages much longer. We're talking another week at the most."

Your statement was in response to my statement "In terms of the paycuts - I have no proof - never said that I did."

So you think my other statement "Leave now - either way you'll not be making your current wages much longer. We're talking another week at the most." illustrates that I had proof? I have readily said that that statement was my opinion. You think that's your smoking gun? That's so absurd.

We are not agruing on the same level here...that's why I put this to bed.

Take care
 
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