Judge grants 21% pay cuts -- Most US Airways workers will see their paychecks slashed
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Some key comments from the Charlotte Observer article:
1. During closing arguments, the IAM pleaded for a chance to reach a consensual agreement.
2. "This keeps them in the game," said Philip Baggaley, an airline credit analyst with Standard & Poor's. "But they still have a lot of obstacles to clear."
3. Mitchell said a 21 percent pay cut is better than a 100 percent cut, which would happen if the airline goes under. "Basically what we have here is a ticking fiscal time bomb," Mitchell said.
4. In a recorded message to employees, Lakefield said the company will announce in the coming days precisely how and when the cuts will take effect. "We do not celebrate or take joy in this decision," said Lakefield, a former banker who took over as CEO in April. "I know full well that the pay cuts that result from this measure will hurt, and I sincerely regret that the company had to take this path."
5. Even with the cut, most US Airways workers will be earning more than if they left for new jobs at other airlines, where they would start at the bottom of the seniority ladder.
6. Mitchell said worries that by approving the emergency temporary pay cuts, he could be giving management the upper hand in future permanent negotiations. "Unless something close to the relief the (company) has requested is granted, the cash level of the airline would drop below the point where it could continue in business," he said.
7. Candice Johnson, a spokeswoman for the Communications Workers of America, said the union fears the company will ask for even steeper cuts than 21 percent in its negotiations for permanent pay cuts.
USA320Pilot comments: ALPA's advisors told the MEC that the longer you wait to cut a TA the worse the deal will get. This is exactly what happened to the pilot group who could have had a much better deal in the summer, a worse deal if the company's September 6 proposal had been sent out by the RC4 for vote, and then, the piltos ended up with a TA that was the worst proposal so fair. The same thing could occur here and Candice Johnson has a valid concern. Bruce Lakefield indicated the pay cuts could be less, if there were more balanced long-term agreements reached that cover all aspects of hte contracts.
Regards,
USA320Pilot
See Story
Some key comments from the Charlotte Observer article:
1. During closing arguments, the IAM pleaded for a chance to reach a consensual agreement.
2. "This keeps them in the game," said Philip Baggaley, an airline credit analyst with Standard & Poor's. "But they still have a lot of obstacles to clear."
3. Mitchell said a 21 percent pay cut is better than a 100 percent cut, which would happen if the airline goes under. "Basically what we have here is a ticking fiscal time bomb," Mitchell said.
4. In a recorded message to employees, Lakefield said the company will announce in the coming days precisely how and when the cuts will take effect. "We do not celebrate or take joy in this decision," said Lakefield, a former banker who took over as CEO in April. "I know full well that the pay cuts that result from this measure will hurt, and I sincerely regret that the company had to take this path."
5. Even with the cut, most US Airways workers will be earning more than if they left for new jobs at other airlines, where they would start at the bottom of the seniority ladder.
6. Mitchell said worries that by approving the emergency temporary pay cuts, he could be giving management the upper hand in future permanent negotiations. "Unless something close to the relief the (company) has requested is granted, the cash level of the airline would drop below the point where it could continue in business," he said.
7. Candice Johnson, a spokeswoman for the Communications Workers of America, said the union fears the company will ask for even steeper cuts than 21 percent in its negotiations for permanent pay cuts.
USA320Pilot comments: ALPA's advisors told the MEC that the longer you wait to cut a TA the worse the deal will get. This is exactly what happened to the pilot group who could have had a much better deal in the summer, a worse deal if the company's September 6 proposal had been sent out by the RC4 for vote, and then, the piltos ended up with a TA that was the worst proposal so fair. The same thing could occur here and Candice Johnson has a valid concern. Bruce Lakefield indicated the pay cuts could be less, if there were more balanced long-term agreements reached that cover all aspects of hte contracts.
Regards,
USA320Pilot
