Could this be the end of Alleghany?


Jan 8, 2003
[P][FONT size=3][FONT color=#000000][FONT face=Times New Roman]Apparently,US Airways/Alleghany is demanding a 600% increase in employee's cost for health insurance.[/FONT][/FONT][/FONT][/P][SPAN][A href=][/A][/SPAN]
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US Airways Subsidiary Demands 600% Cost Increase in Health Care
Tuesday January 14, 11:46 am ET
Allegheny Airlines/US Airways Breaks Promise to Workers

WASHINGTON, Jan. 14 /PRNewswire/ -- Allegheny Airlines, a subsidiary of US Airways, is gutting the health care coverage of its 1,200 Teamster mechanics, fleet agents and passenger service agents. This recently announced act of corporate greed will result in up to $700 a month being taken from workers' paychecks to finance US Airways' bankruptcy reorganization.
The thread on pilots compensation levels pales in comparison when looking at what healthcare in this country demands. Look at the people running these healthcare entities to see what they are about, they live as kings on the backs of the working class. Healthcare costs, like drugs, are out of control and so are the people who run them.
[BLOCKQUOTE][BR]----------------[BR]On 1/14/2003 11:02:38 AM FM2436 wrote:
[P]Apparently,US Airways/Alleghany is demanding a 600% increase in employee's cost for health insurance.[BR][BR][/P]----------------[/BLOCKQUOTE]
[P][/P]What is the dollar increase?[BR][BR]$10 to $70 represents a 600% increase.[BR][BR]My insurance went from $110 a month to $180 a month - a 60% increase but a $70 a month increase.
At my employer, my insurance went from $0/month to $80. Not the best news, but I'm a.) still employed, and b.) still medically insured.
I could be wrong, but isn't this a reaction to the fact that no one at ALG would negotiate with the company any sort of financial relief? I thought I read that if nothing was negotiated that the company would impose this. Looks like they weren't bluffing (again!).
Your are correct. Management issued a letter to the employees (Teamsters) that thier time had come. If they would not sit down a negociate the company would up the ante on insurance coverage as it is not covered in the union contract. It was obvious from the letter that they weren't kidding. Not sure why the teamsters didn't repond in some fashion for the best interest of their membership.

Maybe all Union members should sit back and analize if union membership is even the answer anymore. Who's interest are they looking out for anyway???????
the company and the union have been in negotiations for quite some time but so far have been unable to reach an agreement. the company issued a final proposal/take it or leave it ultimatum at the end of dec. most mechanics are willing to help the company but they are not going to cut their throats doing it. the company has taken many things from the mechanics over the years and they are fighting for a fair concession.
how many unions so far have had to give up Easter and Memorial Day holidays? how many have actually had the concessions slowly returned to them over the next 6 years? How many have a clause in their contract stating that if the company is sold their contract goes back to pre concession terms?

alg management wants to take 2 holidays, the 401k base contribution, a pay cut and put wording in the contract that they can raise the health insurance $25.00 a month anytime they need to. They also want to extend the contract for 6 more years and at the end of that time the pay will be what it should be in 2004.

our health insurance was already increased in oct of 2002 as a concession.

management will not put any guarantees in the contract, such as if sold the contract reverts to pre-concession terms, etc.

As far as the 401k and the holidays if we want them back we will have to renegotiate them at the end of 6 years when the contract is up.

when most of us mechanics are making 12.00 an hour its asking a lot to take this kind of a hit. especially when Dave S has said no one making less than $30,000/yr will be asked for a pay cut. All we want is to be treated fairly. No non-union employess making less than $30,000 were asked to take a paycut at alg.

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