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On 12/27/2002 10:16:23 PM AAquila wrote:
At Continental, Lorenzo was unable - some would say unwilling - to negotiate any further with the airline's labor unions. Lorenzo filed for bankruptcy. The move allowed him to fire union employees and restart the airline with a non-union staff. He cut wages in half and forced new rules requiring longer hours, shorter breaks, and no guaranteed time off. The unions protested, but were unable to have Lorenzo's actions overturned.
http://www.pbs.org/kcet/chasingthesun/inno...s/florenzo.html
Let me see, he cuts their wages in half then they get a 23% raise, their mechanics are still making less than our Fleet Service Clerks by my math.
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You left out a lot. CAL filed again, Lorenzo was seen to be "unfit" to run any airline and was bounced out of the industry.
When CAL filed the first time under Lorenzo his sole purpose for filing was to void the pilots contract, he had already beaten the mechanics thanks to the co-operation he received from the ALPA represented pilots who willingly crossed the mechanics pickets and the double digit unemployment rate ( the highest since the Great Depression). The pilots felt that they were safe because they had a contract, a judge, who later became an employee of Lorenzo presided over the case. As a result of the misuse of the law the BK code was changed to restrict the ability of companies using it to void labor contracts. This revision of the code covers only labor contracts.