Amfa Just Took A 9.8% Paycut

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Jun 28, 2004
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Judge approves United labour agreements
By Caroline Daniel in Chicago
Published: January 31 2005 23:59 | Last updated: January 31 2005 23:59

http://news.ft.com/cms/s/b636354a-73e0-11d...oo1&segid=03058

United on Monday afternoon gained approval from the bankruptcy judge for its labour agreements with four groups, including the flight attendants and pilots unions.

The judge also agreed to United's request to impose interim wage cuts on the mechanics, as they take more time to negotiate a deal. They will see a 9.8 per cent pay cut from Tuesday and a 25 per cent cut in sick pay. The interim relief will last until the end of May.

United has been facing mixed progress on its efforts to get new labour agreements after its pilots and flight attendants voted in favour of proposed cuts, while its mechanics on Friday voted against cuts, and threatened strike action if the contract is imposed by the courts.

The flight attendants voted by 56 per cent in favour of approving the new contract, which provides $131m in cost savings over the next five years, while United's pilots approved a deal generating $181m in savings. Three quarters of the pilots backed the new contracts.

On Friday, members of AMFA, the mechanics union, overwhelmingly authorised their national director to call a strike.

The flight attendants had previously been the more belligerent union. Members had threatened strike action at both US Airways and United if they moved to ask the bankruptcy court to impose labour cuts as part of the section 1113 process.

Instead, the union backed down and agreed consensual deals, averting an imposed deal. Notably the flight attendant's latest contract includes no changes to work rules or healthcare benefits but involves reducing hourly pay levels to 1991 levels.

The concessions underscore the fact that unions have been more willing to give up pay that they hope to get back in future pay agreements rather than amend work rules, which are seen to have a deeper impact on quality of life and can often facilitate job cuts. Although the approval on wage cuts from the two unions was welcomed by United, it faces tough negotiations over its plans to terminate pensions.

While the pilots have secured $550m in convertible equity, in concessions for ending pensions, the flight attendants yesterday demanded: "an exit strategy from bankruptcy that does not destroy the hard-earned pensions promised to us for retirement security that would be one sacrifice too many."

It comes as US Airways, which has also used the threat of imposing deals under section 1113 to secure $1.1bn in labour concessions, on Monday announced net losses of $236m for the fourth quarter 2004, compared with a $98m net loss for the same period in 2003. It is targeting an exit from bankruptcy later this summer.
 
The judge also agreed to United's request to impose interim wage cuts on the mechanics, as they take more time to negotiate a deal. They will see a 9.8 per cent pay cut from Tuesday and a 25 per cent cut in sick pay. The interim relief will last until the end of May.

Then what happens ?
 
blueskies4ever said:
The judge also agreed to United's request to impose interim wage cuts on the mechanics, as they take more time to negotiate a deal. They will see a 9.8 per cent pay cut from Tuesday and a 25 per cent cut in sick pay. The interim relief will last until the end of May.

Then what happens ?
[post="244321"][/post]​

If no agreement by then or if not ratified, the company is likely to ask the court to abrogate the contract.
 
blueskies4ever said:
The judge also agreed to United's request to impose interim wage cuts on the mechanics, as they take more time to negotiate a deal. They will see a 9.8 per cent pay cut from Tuesday and a 25 per cent cut in sick pay. The interim relief will last until the end of May.

Then what happens ?
[post="244321"][/post]​
a strike, and united unfortunately might go away.
 
spacewaitress said:
Yeah, remember Continental?
[post="244350"][/post]​
Just asking....lets see...if the guys are on strike..(everyone except that scab ual747) how many people are going to come to the Bay Area to work for a BK company??? I know there are lots of mechanics needing work, but we all know how expensive this place is...not to say some wouldn't...but hypothetically....would you? Especially if you didn't own anything here??? Or would you cross the line if you were a "furloughed" UAL mech??? I don't know...maybe some will...heck maybe by the bus load they'll come to save the day and have "scab" be their lead or something...but something tells me...the "weasel" isn't one of the heavy hitters.... ;)
 
blueskies4ever said:
The judge also agreed to United's request to impose interim wage cuts on the mechanics, as they take more time to negotiate a deal. They will see a 9.8 per cent pay cut from Tuesday and a 25 per cent cut in sick pay. The interim relief will last until the end of May.

Then what happens ?
[post="244321"][/post]​

Maybe we did not use the correct language for 'NO'!!!
NON !
NEIN!
不!
いいえ!
Nr!
아니다!
НЕТ!
¡cNo!

Pick one or use the simple english vernacular..... "NO"!!!

B) UT
 
Well here's how I see it

Our contract has not been abrogated, I don't believe we can (legally) strike over this court imposed paycut. Some folks are whining over this cut being roughly twice what it would have been had we just accepted the T/A. If we would have accepted the T/A we would also have lost 4 holidays, outsource limits, CT's Utility and it all would have been permanent - no getting them back.

Plus - it wouldn't matter. The big showdown is going to be in June. The pilots wanted the May 5th date before giving up their pension. That gets them an extra $140 million. So everything has been convieniently delayed for 4 months when we will all be back up against the 1113c unless we agree to have our pensions terminated (except the pilots who have already made a de facto agreement to let the pension go) The company cannot have a judge temporarily terminate your pension, we must agree to allow it or they will ask to have our contracts abrogated.

Now do the numbers - the company wants (or has gotten) $750 million a year in concessions (at this point in time) They just posted a $660 millon loss for the 4th QUARTER of 2004. Don't even count the savings of terminating our pensions, they haven't been funding them for nearly a year now. They have in essence already terminated them so even if we all agree to that it's no better than a wash.

Furthermore it's pretty obvious that the $750 million a year isn't going to take these guys very far.

We do, after all, have 57 senior vice presidents to feed you know.
 
kcabpilot said:
Well here's how I see it

Our contract has not been abrogated, I don't believe we can (legally) strike over this court imposed paycut. Some folks are whining over this cut being roughly twice what it would have been had we just accepted the T/A. If we would have accepted the T/A we would also have lost 4 holidays, outsource limits, CT's Utility and it all would have been permanent - no getting them back.

Plus - it wouldn't matter. The big showdown is going to be in June. The pilots wanted the May 5th date before giving up their pension. That gets them an extra $140 million. So everything has been convieniently delayed for 4 months when we will all be back up against the 1113c unless we agree to have our pensions terminated (except the pilots who have already made a de facto agreement to let the pension go) The company cannot have a judge temporarily terminate your pension, we must agree to allow it or they will ask to have our contracts abrogated.

Now do the numbers - the company wants (or has gotten) $750 million a year in concessions (at this point in time) They just posted a $660 millon loss for the 4th QUARTER of 2004. Don't even count the savings of terminating our pensions, they haven't been funding them for nearly a year now. They have in essence already terminated them so even if we all agree to that it's no better than a wash.

Furthermore it's pretty obvious that the $750 million a year isn't going to take these guys very far.

We do, after all, have 57 senior vice presidents to feed you know.
[post="244367"][/post]​

:up:

Considering that we started BK with 45 VP's at BK, at least someone is making a living!!!

B) UT
 
The Ronin said:
Just asking....lets see...if the guys are on strike..(everyone except that scab ual747) how many people are going to come to the Bay Area to work for a BK company??? I know there are lots of mechanics needing work, but we all know how expensive this place is...not to say some wouldn't...but hypothetically....would you? Especially if you didn't own anything here??? Or would you cross the line if you were a "furloughed" UAL mech??? I don't know...maybe some will...heck maybe by the bus load they'll come to save the day and have "scab" be their lead or something...but something tells me...the "weasel"  isn't one of the heavy hitters.... ;)
[post="244361"][/post]​

They won't need anyone to work at the SFO maintenance base after they sell it off, at a profit, and outsource the work to various other 'vendors' (who are revenue starving at the moment). That's the reason why they offered a contract that had the potential of being rejected--they want you to go on strike--it makes it all the more 'sellable' to the general public from a PR standpoint JMHO. It happened in IND, it can happen in the Bay area as well.
 
Hey Mr Owens.

What do you have to say now?

Are you going to tell the AMFA represented Mechanics at UAL to strike now since an 1113e has happened?
 

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