US Airways initially asked the employees for $850 million in concessions, but due to union stupidity the employees ended up giving about $1.1 billion in annual savings. Can you tell me the labor success in this effort?
The tragedy here is that the union’s forced to have this story played out in bankruptcy court, and lost, especially the IAM. If every union had the courage to play ball last summer we all would be much better off. There would be:
Stronger customer confidence and less passengers booking away to other carriers, inceasing revenue.
Better financial community and investor confidence.
Much better contracts for all employees.
Millions and millions of dollars not spent on bankruptcy fees.
The 279 minimum fleet count, fragmentation, and CAR’s protections would still be in place.
A much larger MDA and PSA operation, with RJ delivery’s still occurring providing greater mainline feed.
No fire sale deal with GE causing the reduction of 25 mainline aircraft, which Bruce Lakefield told the ALPA MEC could occur last August in a meeting I attended.
Improved liquidity to implement the Transformation Plan.
Fuel hedges in place preventing a desperate move to raise cash. This move helped the company in the short-term, but will have medium-term negative financial effects.
Keeping future Airbus options and not delaying the 29 aircraft firm order for A330s, A321s, and A320s by one-year until 2008.
Common and restricted stock would likely remain in place.
What’s truly sad is that primarily ALPA’s RC4 and the IAM refused to confront reality head on, and every major union stuck their collective heads in the sand and brought the harsh judgment of the marketplace and bankruptcy court down on us.
In the end I believe IAM District Lodge representative Randy Canale has a better idea of what happened. Canale told Knight Ridder News, "I've learned more about bankruptcy law than I ever wanted to know," said Canale, who started handling baggage for United in Philadelphia when he was 19 and quickly rose through union ranks. "In bankruptcy, there is no negotiation. We call it collective begging, not collective bargaining.
"Our members don't understand it," he said. Typically, he said, "you used labor as your bargaining tool. If you weren't happy, you could withhold your labor" and strike.
Now, it's all about affecting the bankrupt company's tenuous relationship with the lenders keeping it afloat. Lenders want a committed and content workforce.
"You're telling the boss to go back to the lender and tell them to kiss off, because the workers aren't going to work for a contract like that."
But it is a form of brinkmanship, Canale said, because "what if they say, `see you later' and your airline liquidates? ... But you never see the lender at the bargaining table."
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Regards,
USA320Pilot
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