ALPA MEC CODE-A-PHONE UPDATE - September 23, 2004
This is Jack Stephan with a US Airways MEC update for Thursday, September 23rd, with one new item.
US Airways President and CEO Bruce Lakefield announced yesterday that if US Airways and ALPA, the AFA, CWA, IAM and TWU do not immediately reach agreements on interim relief, US Airways will file a motion tomorrow, Friday, September 24, in bankruptcy court, for authority to implement immediate cost reductions, including pay cuts. The text of this message can be found on the pilots only home page under Transformation Plan/Bankruptcy Information.
Under Section 1113(e) of the Bankruptcy Code, a bankruptcy court may grant emergency interim relief from the terms of a labor agreement on an expedited basis without a full negotiating process, if the court finds that the relief is "essential" to the continuation of business or to avoid "irreparable harm" to the bankruptcy estate. ALPA plans to oppose this motion in court if an agreement is not reached before the hearing.
If US Airways files an 1113(e) motion with the court tomorrow, a hearing date must be scheduled. No changes to the contract will be made until after a hearing. Mr. Lakefield has stated that management will continue to seek agreements with each union prior to that hearing. If the court grants the 1113(e) motion, during the time that the short-term cost reductions are in effect, US Airways and ALPA can continue their Transformation Plan negotiations on longer-term relief. ALPA does not expect to enter into negotiations with management on its 1113(e) proposal for interim relief before the Company files its 1113(e) motion tomorrow. If interim relief is imposed by the court, the terms imposed do not dictate the terms of a long-term agreement with the Company.
The full details of the Company's 1113(e) proposal are available on the pilots only website under "Transformation Plan/Bankruptcy Information." It is imperative that all pilots read this information. This interim relief proposal includes pay cuts, pilot DC plan reductions, relief from minimum aircraft requirements, and pay cap changes.
The Company has previously indicated that it would seek 1113 relief if no consensual agreement was reached. Your MEC Officers are disappointed that an agreement was not reached with management outside of bankruptcy; however, the MEC yesterday passed a resolution that authorized the Negotiating Committee to proceed, unrestricted, with talks in a renewed effort to reach a TA. It is ALPA's goal to have the Negotiating Committee negotiate a comprehensive, consensual agreement that covers short-term and long-term relief without the need for 1113(e) interim relief or long-term 1113 relief.
The Negotiating Committee is currently meeting internally, and negotiations with management are expected to resume this weekend.
If a TA is reached, the MEC will review it, but any agreement will be subject to ratification by the US Airways pilots before it becomes effective.
Please remember we have 1,879 pilots on furlough.
Thank you for listening.
This is Jack Stephan with a US Airways MEC update for Thursday, September 23rd, with one new item.
US Airways President and CEO Bruce Lakefield announced yesterday that if US Airways and ALPA, the AFA, CWA, IAM and TWU do not immediately reach agreements on interim relief, US Airways will file a motion tomorrow, Friday, September 24, in bankruptcy court, for authority to implement immediate cost reductions, including pay cuts. The text of this message can be found on the pilots only home page under Transformation Plan/Bankruptcy Information.
Under Section 1113(e) of the Bankruptcy Code, a bankruptcy court may grant emergency interim relief from the terms of a labor agreement on an expedited basis without a full negotiating process, if the court finds that the relief is "essential" to the continuation of business or to avoid "irreparable harm" to the bankruptcy estate. ALPA plans to oppose this motion in court if an agreement is not reached before the hearing.
If US Airways files an 1113(e) motion with the court tomorrow, a hearing date must be scheduled. No changes to the contract will be made until after a hearing. Mr. Lakefield has stated that management will continue to seek agreements with each union prior to that hearing. If the court grants the 1113(e) motion, during the time that the short-term cost reductions are in effect, US Airways and ALPA can continue their Transformation Plan negotiations on longer-term relief. ALPA does not expect to enter into negotiations with management on its 1113(e) proposal for interim relief before the Company files its 1113(e) motion tomorrow. If interim relief is imposed by the court, the terms imposed do not dictate the terms of a long-term agreement with the Company.
The full details of the Company's 1113(e) proposal are available on the pilots only website under "Transformation Plan/Bankruptcy Information." It is imperative that all pilots read this information. This interim relief proposal includes pay cuts, pilot DC plan reductions, relief from minimum aircraft requirements, and pay cap changes.
The Company has previously indicated that it would seek 1113 relief if no consensual agreement was reached. Your MEC Officers are disappointed that an agreement was not reached with management outside of bankruptcy; however, the MEC yesterday passed a resolution that authorized the Negotiating Committee to proceed, unrestricted, with talks in a renewed effort to reach a TA. It is ALPA's goal to have the Negotiating Committee negotiate a comprehensive, consensual agreement that covers short-term and long-term relief without the need for 1113(e) interim relief or long-term 1113 relief.
The Negotiating Committee is currently meeting internally, and negotiations with management are expected to resume this weekend.
If a TA is reached, the MEC will review it, but any agreement will be subject to ratification by the US Airways pilots before it becomes effective.
Please remember we have 1,879 pilots on furlough.
Thank you for listening.
