MEC CODE-A-PHONE UPDATE - June 29, 2005
This is Jack Stephan with a US Airways MEC update for Wednesday, June 29th, with four new items.
Item 1. The MEC reconvened their regular second quarter meeting today and continued their discussion on a merger assessment. The MEC then voted to assess each US Airways pilot .33 percent of their dues income per month for 24 months.
The proceeds from the assessment will be used for expenses pursuant to Section 45.J related to a proposed or actual corporate transaction involving US Airways. The proceeds from the assessment will be collected and maintained in the manner specified in the ALPA Administrative Manual, except that the Fund Administrator will provide reports on the financial activity in the fund to the MEC on a monthly basis rather than an annual basis.
All furloughed US Airways pilots will be treated equally and therefore, this assessment will not apply to MDA pilots or other furloughed pilots until recall to the mainline.
Any unused proceeds from this assessment, together with accrued interest, will be handled in accordance with the ALPA Administrative Manual, with any refunds made on a pro-rata basis to those pilots who contributed to the fund.
A letter will be sent out shortly to all pilots that explains the billing process.
The merger assessment resolution is posted on the pilots only website under “MEC Information.â€
The MEC then received a report from the Grievance Committee in closed session, and a report from the Negotiating Committee in open and closed session. The Negotiating Committee reported that the CASS implementation process is on track, and that America West and US Airways are working together with their respective IT departments to move the process forward. At this time there is no announced completion date.
The meeting adjourned at 4:25 p.m.
Item 2. The US Airways MEC Transition Agreement Steering Committee, which the MEC appointed to oversee transition agreement negotiations with US Airways and America West, will be meeting with their America West MEC transition agreement counterparts tomorrow in Chicago. The US Airways committee members include the MEC Chairman, Vice Chairman and the Negotiating Committee Chairman, and they will be reporting to the MEC on the progress of the transition process.
Item 3. US Airways Group Inc. filed a rights offering on Wednesday to raise $150 million in additional equity financing for its restructuring and proposed merger with America West.
The filing with the Securities and Exchange Commission states it would offer rights to America West shareholders, US Airways creditors and affiliates to buy shares in the new company. Just over 9 million shares are being offered at a proposed price of $16.50.
This rights offering must be approved by the bankruptcy judge and would not go through if the US Airways' restructuring plan is not approved or if the merger fails.
US Airways plans to file its bankruptcy reorganization plan with the court on Thursday. The POR will detail how the airline plans to operate before it completes its merger and how it plans to settle its bankruptcy claims.
Item 4. Yesterday, your MEC Officers, Negotiating and Grievance Committees met with Company representatives in Crystal City. MEC Chairman Bill Pollock expressed his outrage at recent Company attempts to unilaterally disregard key elements of our contract in the guise of promoting the proposed transaction with America West. This management needs to be reminded that it was due to the unprecedented sacrifices by our pilots that made this proposed transaction viable. Management has clearly dismissed their partnership with ALPA and instead has embarked on a course of action that is nothing short of out and out corporate greed. Your MEC is currently evaluating all options and responses to these intolerable management land grabs. Please refer to the code a phone and the pilots only web site for further developments on this issue.
Please remember we now have 1,574 pilots on furlough with approximately 400 pilots currently working at MDA or other Jets For Jobs carriers.
Thank you for listening.
This is Jack Stephan with a US Airways MEC update for Wednesday, June 29th, with four new items.
Item 1. The MEC reconvened their regular second quarter meeting today and continued their discussion on a merger assessment. The MEC then voted to assess each US Airways pilot .33 percent of their dues income per month for 24 months.
The proceeds from the assessment will be used for expenses pursuant to Section 45.J related to a proposed or actual corporate transaction involving US Airways. The proceeds from the assessment will be collected and maintained in the manner specified in the ALPA Administrative Manual, except that the Fund Administrator will provide reports on the financial activity in the fund to the MEC on a monthly basis rather than an annual basis.
All furloughed US Airways pilots will be treated equally and therefore, this assessment will not apply to MDA pilots or other furloughed pilots until recall to the mainline.
Any unused proceeds from this assessment, together with accrued interest, will be handled in accordance with the ALPA Administrative Manual, with any refunds made on a pro-rata basis to those pilots who contributed to the fund.
A letter will be sent out shortly to all pilots that explains the billing process.
The merger assessment resolution is posted on the pilots only website under “MEC Information.â€
The MEC then received a report from the Grievance Committee in closed session, and a report from the Negotiating Committee in open and closed session. The Negotiating Committee reported that the CASS implementation process is on track, and that America West and US Airways are working together with their respective IT departments to move the process forward. At this time there is no announced completion date.
The meeting adjourned at 4:25 p.m.
Item 2. The US Airways MEC Transition Agreement Steering Committee, which the MEC appointed to oversee transition agreement negotiations with US Airways and America West, will be meeting with their America West MEC transition agreement counterparts tomorrow in Chicago. The US Airways committee members include the MEC Chairman, Vice Chairman and the Negotiating Committee Chairman, and they will be reporting to the MEC on the progress of the transition process.
Item 3. US Airways Group Inc. filed a rights offering on Wednesday to raise $150 million in additional equity financing for its restructuring and proposed merger with America West.
The filing with the Securities and Exchange Commission states it would offer rights to America West shareholders, US Airways creditors and affiliates to buy shares in the new company. Just over 9 million shares are being offered at a proposed price of $16.50.
This rights offering must be approved by the bankruptcy judge and would not go through if the US Airways' restructuring plan is not approved or if the merger fails.
US Airways plans to file its bankruptcy reorganization plan with the court on Thursday. The POR will detail how the airline plans to operate before it completes its merger and how it plans to settle its bankruptcy claims.
Item 4. Yesterday, your MEC Officers, Negotiating and Grievance Committees met with Company representatives in Crystal City. MEC Chairman Bill Pollock expressed his outrage at recent Company attempts to unilaterally disregard key elements of our contract in the guise of promoting the proposed transaction with America West. This management needs to be reminded that it was due to the unprecedented sacrifices by our pilots that made this proposed transaction viable. Management has clearly dismissed their partnership with ALPA and instead has embarked on a course of action that is nothing short of out and out corporate greed. Your MEC is currently evaluating all options and responses to these intolerable management land grabs. Please refer to the code a phone and the pilots only web site for further developments on this issue.
Please remember we now have 1,574 pilots on furlough with approximately 400 pilots currently working at MDA or other Jets For Jobs carriers.
Thank you for listening.
