MEC CODE-A-PHONE UPDATE - July 21, 2005
This is Jack Stephan with a US Airways MEC update for Thursday, July 21st, with one new item.
The MEC reconvened its special meeting today and received a bankruptcy and merger update from MEC bankruptcy counsel, legal counsel, and our investment banker in both open and closed session. Counsel reviewed important upcoming dates in bankruptcy court. These dates of note include August 9, when the bankruptcy court will hold a hearing on whether to approve the Disclosure Statement, with objections due August 2nd. During this hearing, US Airways will ask the Court to set a confirmation hearing on the Company's plan of reorganization for September 15, with objections to confirmation and ballots due on September 12.
The MEC unanimously passed a resolution charging the Transition Coordinating Committee to immediately engage the Company in negotiations concerning the situation surrounding Governance, Profit Sharing, Equity participation, and the assumption of the US Airways Collective Bargaining Agreement. The Transition Coordinating Committee will report the progress of these talks to the MEC at the upcoming special MEC meeting, which is to occur no later than August 1st & 2nd.
US Airways CEO Bruce Lakefield and other management representatives, including Executive VP, Marketing & Planning Bruce Ashby, CFO Ron Stanley, Sr. Director of Flight Operations Captain Lyle Hogg, and Regional Director of Flying – PIT Captain Jim Corbusier attended today’s special MEC meeting. Mr. Lakefield gave the MEC a history of US Airways’ efforts to build a restructuring plan, find investors, and develop the proposed merger with America West. Management also addressed the MEC in closed session.
The MEC also discussed pilots receiving access to 401(k) trading as it currently exists in the DC plan. The R&I Committee will meet with company representatives and create a point paper with further clarifications as to the plan design, in order to investigate the new investment options that will be available to pilots if the two plans were combined. The MEC will review this point paper during the August 1st and 2nd special MEC meeting.
The Grievance Committee gave the MEC an update on a proposal ALPA received from the Company on Deadhead and Variable Min. In part, it involves backfilling 50 percent DH pay with daily minimum and duty rigs as pay no credit. The settlement also includes a limited cash amount to be paid out to pilots with claims on file. Due to the numerous areas of the Contract that are affected by the proposed settlement, the parties are currently attempting to address and clarify all such areas. The Grievance Committee plans to have additional information on this issue late next week. If a settlement between ALPA and the Company is reached, it will go to the MEC for consideration. Please refer to the code a phone and the pilots only web site for further developments on this issue.
The MEC Chairman has informed the MEC that he intends to approach Senior Director of Flying, Captain Lyle Hogg, expressing the Association’s displeasure with the present APL preference form. Captain Pollock will be seeking, among other things, that this form be modified to apply only to MDA pilots and that any reference to APL and CEL pilots be removed. We will report back to you on the progress of these discussions.
The MEC also authorized Flight Pay Loss for Dennis Brennan for System Board work as necessary.
The special meeting adjourned at 5:33 p.m.
Please remember we now have 1,574 pilots on furlough with approximately 400 pilots currently working at MDA or Jets For Jobs carriers.
Thank you for listening.
This is Jack Stephan with a US Airways MEC update for Thursday, July 21st, with one new item.
The MEC reconvened its special meeting today and received a bankruptcy and merger update from MEC bankruptcy counsel, legal counsel, and our investment banker in both open and closed session. Counsel reviewed important upcoming dates in bankruptcy court. These dates of note include August 9, when the bankruptcy court will hold a hearing on whether to approve the Disclosure Statement, with objections due August 2nd. During this hearing, US Airways will ask the Court to set a confirmation hearing on the Company's plan of reorganization for September 15, with objections to confirmation and ballots due on September 12.
The MEC unanimously passed a resolution charging the Transition Coordinating Committee to immediately engage the Company in negotiations concerning the situation surrounding Governance, Profit Sharing, Equity participation, and the assumption of the US Airways Collective Bargaining Agreement. The Transition Coordinating Committee will report the progress of these talks to the MEC at the upcoming special MEC meeting, which is to occur no later than August 1st & 2nd.
US Airways CEO Bruce Lakefield and other management representatives, including Executive VP, Marketing & Planning Bruce Ashby, CFO Ron Stanley, Sr. Director of Flight Operations Captain Lyle Hogg, and Regional Director of Flying – PIT Captain Jim Corbusier attended today’s special MEC meeting. Mr. Lakefield gave the MEC a history of US Airways’ efforts to build a restructuring plan, find investors, and develop the proposed merger with America West. Management also addressed the MEC in closed session.
The MEC also discussed pilots receiving access to 401(k) trading as it currently exists in the DC plan. The R&I Committee will meet with company representatives and create a point paper with further clarifications as to the plan design, in order to investigate the new investment options that will be available to pilots if the two plans were combined. The MEC will review this point paper during the August 1st and 2nd special MEC meeting.
The Grievance Committee gave the MEC an update on a proposal ALPA received from the Company on Deadhead and Variable Min. In part, it involves backfilling 50 percent DH pay with daily minimum and duty rigs as pay no credit. The settlement also includes a limited cash amount to be paid out to pilots with claims on file. Due to the numerous areas of the Contract that are affected by the proposed settlement, the parties are currently attempting to address and clarify all such areas. The Grievance Committee plans to have additional information on this issue late next week. If a settlement between ALPA and the Company is reached, it will go to the MEC for consideration. Please refer to the code a phone and the pilots only web site for further developments on this issue.
The MEC Chairman has informed the MEC that he intends to approach Senior Director of Flying, Captain Lyle Hogg, expressing the Association’s displeasure with the present APL preference form. Captain Pollock will be seeking, among other things, that this form be modified to apply only to MDA pilots and that any reference to APL and CEL pilots be removed. We will report back to you on the progress of these discussions.
The MEC also authorized Flight Pay Loss for Dennis Brennan for System Board work as necessary.
The special meeting adjourned at 5:33 p.m.
Please remember we now have 1,574 pilots on furlough with approximately 400 pilots currently working at MDA or Jets For Jobs carriers.
Thank you for listening.
