CWA'ers meet with management to discuss America West proposed merger, "Jets for Job" protection for MidAtlantic agents and Early Out issues...
CWA'ers met with US Airways executives and management yesterday to discuss the implications of the news announcements about a possible US Airways/America West merger, and also to continue discussions on "Jets for Jobs" job security that will be impacted by the Wexford/Republic agreement and finally, outstanding Early Out issues. Here's the feedback from those talks:
America West merger:
Executives and management were cautious about characterizing the merger discussions. News reports and industry analysts say that the merger would likely leave US Airways as the surviving airline and that there would be minimal impact on station/ground personnel because the two airlines only minimal overlapping route structure. US Airways executives would only commit that "that seems right," and "We've seen the same reports," but they did acknowledge that both outcomes - US Airways as the survivor and minimal impact on employee job security - would be goals of US Airways management in a merger situation.
Passenger Service Job Security:
We pointed out to US Airways execs and managers that our contract provides for very clear Allegheny/Mohawk job security and seniority protection in the event of a sale or merger, and we questioned whether any potential merger partner has been made aware of that contract language. Executives acknowledged that we have that language in our contract and that all parties are aware of it. We stated that If there is going to be a merger of US Airways with another airline, CWA's number one goal is to protect and preserve the jobs and seniority of the passenger service employees.
Sale of other parts of the airline:
We questioned management about whether they are pursuing any merger discussions or investment options that would lead to the sale of other parts of the airline (we're particularly concerned about the Shuttle). Management was very emphatic that they do not want to sell any parts of the airline and that, short of liquidation, they don't see how selling off the assets of the airline makes sense as a business strategy for US Airways.
Timing of a merger, facilities to close in the event of a merger:
Management would not commit on either of these questions, saying that it is too early to tell if there will be a merger plan, let alone the exact shape of it. They did restate, though, that there is very little overlap in facilities between America West and US Airways.
Early Out discussion:
We stated to management that our Early Out agreement is a contract and that any merger or sale of the airline should have no impact on that agreement. Management confirmed that, and confirmed that all the Early Out commitments are underway and would be fulfilled.
We discussed with management that the Early Out agreement, which calls for an Early Out vacancy to be filled at step one, would result in the 90 or so supervisor EO vacancies being filled by new hires off the street. In the event of a downsizing, those new hires would likely not be furloughed while longer service employees would be furloughed, not to mention that the agents would have to train the new hires, who would then become their supervisors. We have proposed that all the 90+ supervisor EO positions be opened-up to all interested agents system-wide on a new, fair, and expedited basis, and that the new-hire, first step EO vacancies be filled as Agent postions. We're still in discussions on that point.
Jets for Jobs:
US Airways' agreement with Wexford/Republic allows for the sale of all the MidAtlantic jets to Republic. That would be the end of MidAtlantic. MidAtlantic is the division that management committed to operate (in the '02-'03 concessions agreements) to provide a "soft landing" and "Jets for Jobs" in return for the employee concessions. We have said to management that there has to be a replacement "Jets for Jobs" solution to substitute for the potential loss of MDA. At our meeting management made proposal that would go a long way toward resolving the issue. We will continue meet and discuss the wording and the details of that proposal until we are able to reach agreement.
CWA'ers met with US Airways executives and management yesterday to discuss the implications of the news announcements about a possible US Airways/America West merger, and also to continue discussions on "Jets for Jobs" job security that will be impacted by the Wexford/Republic agreement and finally, outstanding Early Out issues. Here's the feedback from those talks:
America West merger:
Executives and management were cautious about characterizing the merger discussions. News reports and industry analysts say that the merger would likely leave US Airways as the surviving airline and that there would be minimal impact on station/ground personnel because the two airlines only minimal overlapping route structure. US Airways executives would only commit that "that seems right," and "We've seen the same reports," but they did acknowledge that both outcomes - US Airways as the survivor and minimal impact on employee job security - would be goals of US Airways management in a merger situation.
Passenger Service Job Security:
We pointed out to US Airways execs and managers that our contract provides for very clear Allegheny/Mohawk job security and seniority protection in the event of a sale or merger, and we questioned whether any potential merger partner has been made aware of that contract language. Executives acknowledged that we have that language in our contract and that all parties are aware of it. We stated that If there is going to be a merger of US Airways with another airline, CWA's number one goal is to protect and preserve the jobs and seniority of the passenger service employees.
Sale of other parts of the airline:
We questioned management about whether they are pursuing any merger discussions or investment options that would lead to the sale of other parts of the airline (we're particularly concerned about the Shuttle). Management was very emphatic that they do not want to sell any parts of the airline and that, short of liquidation, they don't see how selling off the assets of the airline makes sense as a business strategy for US Airways.
Timing of a merger, facilities to close in the event of a merger:
Management would not commit on either of these questions, saying that it is too early to tell if there will be a merger plan, let alone the exact shape of it. They did restate, though, that there is very little overlap in facilities between America West and US Airways.
Early Out discussion:
We stated to management that our Early Out agreement is a contract and that any merger or sale of the airline should have no impact on that agreement. Management confirmed that, and confirmed that all the Early Out commitments are underway and would be fulfilled.
We discussed with management that the Early Out agreement, which calls for an Early Out vacancy to be filled at step one, would result in the 90 or so supervisor EO vacancies being filled by new hires off the street. In the event of a downsizing, those new hires would likely not be furloughed while longer service employees would be furloughed, not to mention that the agents would have to train the new hires, who would then become their supervisors. We have proposed that all the 90+ supervisor EO positions be opened-up to all interested agents system-wide on a new, fair, and expedited basis, and that the new-hire, first step EO vacancies be filled as Agent postions. We're still in discussions on that point.
Jets for Jobs:
US Airways' agreement with Wexford/Republic allows for the sale of all the MidAtlantic jets to Republic. That would be the end of MidAtlantic. MidAtlantic is the division that management committed to operate (in the '02-'03 concessions agreements) to provide a "soft landing" and "Jets for Jobs" in return for the employee concessions. We have said to management that there has to be a replacement "Jets for Jobs" solution to substitute for the potential loss of MDA. At our meeting management made proposal that would go a long way toward resolving the issue. We will continue meet and discuss the wording and the details of that proposal until we are able to reach agreement.
