Summary of USAirways Business Plan
March 7, 2004
Dear Local 40,
Recently, we have been getting quite a few e-mails and phone calls from flight attendants inquiring about Management's "new business plan" that was presented to the MEC last month. My belief is that this presentation is the responsibility of management who devised this business plan. From my perch, I do not believe that management should keep the employees in the dark, especially since much of the cost savings in this "plan" is requiring the participation of the labor groups. The business plan should not be presented by word of mouth from management via union leaders.
Since management continues to leave out the employees, I will give you a summary of my understanding of this "transitional plan", as it is called. Keep in mind that specifics to the plan were not presented by our CEO and team, and what they may require of our labor group was not divulged either.
The business plan presented to us was a plan that spoke to generalities rather than specifics. Their most important element to the "plan" is concessions to the tune of $1.5 billion in cost reductions across the board or 25% cost reductions in total expenditures. Fuel they can not control, but labor costs they can.
The basic plan they presented was on a slide presentation and below is the "bird's eye view":
1. Roll the hub in PHL (having a hybrid of RJ's and big jets flying in between peak bank of times).
2. Simplifying and rationalizing the fares (that's where labor comes in to subsidize lower fares for the customer) Less restrictions on fares to change itinerary for customers or when they desire to fly.
3. Increase utilization of a/c from 10.5 hours to 12.5 hours a day or more.
4. Improve the route structure.
5. Market the airline aggressively.
6.Change customer perception of our airline.
7. More automation at the gates, and simplify and improve internet access to book flights.
8. A needed $1.5 billion in total cost reduction and major labor participation.
AFA has presented the Company with a resolution of demands that must be met first, before any process could be contemplated on behalf of our members.
If and when that time comes, as your local representative, I will make a motion to ballot all the members to open contracts if the members "will it" for formal negotiations. Absent membership balloting, and if I receive no support from the members of the MEC on this motion, my vote will be NO and it will be on a "roll call" basis.
This management is coming for all of labor to bring wages, work rules, benefits down and in line with the Low Cost Carriers (LCC). I suspect that alone will also include job losses specifically relating to the IAM Mechanics and related and customer service agents. Yesterday I participated in the hand billing event at the airport as local 40 representing the mechanics and related with their outsourcing issue.
I am not opposed to concessions that modify our work rules to work faster, better, smarter...I am opposed to any and all modifications that could potentially impoverish our members and/or eliminate the rank and file employees of all labor groups, bringing the head count down below present "status quo" of approx. 27,000. However, the ultimate decision is yours to make.
The meeting AFA MEC had with Dr. Bronner on March 1 in CLT was uneventful. NO new epiphany, and what was presented, we already knew. To describe the overall meeting in a few words is that it was a non-threatening, frank discussion and exchange, and he requested that we help him turn the airline around.
Presently, we are waiting for the company to present "a plan" in specifics to our members so YOU can let us know if you want to participate in what they request.
Please make copies of the E-line and give to those who have no internet access.
In solidarity,
Teddy Xidas LECP
AFA-CWA PIT/PIW/MAA Local 40
March 7, 2004
Dear Local 40,
Recently, we have been getting quite a few e-mails and phone calls from flight attendants inquiring about Management's "new business plan" that was presented to the MEC last month. My belief is that this presentation is the responsibility of management who devised this business plan. From my perch, I do not believe that management should keep the employees in the dark, especially since much of the cost savings in this "plan" is requiring the participation of the labor groups. The business plan should not be presented by word of mouth from management via union leaders.
Since management continues to leave out the employees, I will give you a summary of my understanding of this "transitional plan", as it is called. Keep in mind that specifics to the plan were not presented by our CEO and team, and what they may require of our labor group was not divulged either.
The business plan presented to us was a plan that spoke to generalities rather than specifics. Their most important element to the "plan" is concessions to the tune of $1.5 billion in cost reductions across the board or 25% cost reductions in total expenditures. Fuel they can not control, but labor costs they can.
The basic plan they presented was on a slide presentation and below is the "bird's eye view":
1. Roll the hub in PHL (having a hybrid of RJ's and big jets flying in between peak bank of times).
2. Simplifying and rationalizing the fares (that's where labor comes in to subsidize lower fares for the customer) Less restrictions on fares to change itinerary for customers or when they desire to fly.
3. Increase utilization of a/c from 10.5 hours to 12.5 hours a day or more.
4. Improve the route structure.
5. Market the airline aggressively.
6.Change customer perception of our airline.
7. More automation at the gates, and simplify and improve internet access to book flights.
8. A needed $1.5 billion in total cost reduction and major labor participation.
AFA has presented the Company with a resolution of demands that must be met first, before any process could be contemplated on behalf of our members.
If and when that time comes, as your local representative, I will make a motion to ballot all the members to open contracts if the members "will it" for formal negotiations. Absent membership balloting, and if I receive no support from the members of the MEC on this motion, my vote will be NO and it will be on a "roll call" basis.
This management is coming for all of labor to bring wages, work rules, benefits down and in line with the Low Cost Carriers (LCC). I suspect that alone will also include job losses specifically relating to the IAM Mechanics and related and customer service agents. Yesterday I participated in the hand billing event at the airport as local 40 representing the mechanics and related with their outsourcing issue.
I am not opposed to concessions that modify our work rules to work faster, better, smarter...I am opposed to any and all modifications that could potentially impoverish our members and/or eliminate the rank and file employees of all labor groups, bringing the head count down below present "status quo" of approx. 27,000. However, the ultimate decision is yours to make.
The meeting AFA MEC had with Dr. Bronner on March 1 in CLT was uneventful. NO new epiphany, and what was presented, we already knew. To describe the overall meeting in a few words is that it was a non-threatening, frank discussion and exchange, and he requested that we help him turn the airline around.
Presently, we are waiting for the company to present "a plan" in specifics to our members so YOU can let us know if you want to participate in what they request.
Please make copies of the E-line and give to those who have no internet access.
In solidarity,
Teddy Xidas LECP
AFA-CWA PIT/PIW/MAA Local 40
