Newspaper article incorrectly implies that "all the unions" are negotiating concessions with US Airways management..
Several agents have expressed concern, after reading a February 17 New York Times article, that there may be passenger service concessions negotiations going on with US Airways management. That is not the case - there have been no CWA negotiations with management and if any negotiation meeting is scheduled our members will be informed in advance of that meeting and a full report would be issued following the meeting. That is our policy.
Below is the information from the New York Times article with CWA's remarks on each relevant point.
New York Times Article
NYT- US Airways, which is based in Arlington, Va., emerged from bankruptcy last spring. The airline said in December that it had to rip up its business plan because it was not achieving results that would allow it to stay in compliance with $900 million in federal loan guarantees that formed the basis of its restructuring.
CWA- US Airways management wants to "rip up its business plan?"
Twice we have made major salary, benefit and workrule concessions based on management’s assurances that their business plans will lead to greater job security and a "soft landing" as the company is restructured. We expect those agreements to be honored.
NYT- The airline faces a stiff challenge from low-fare carriers, particularly Southwest Airlines, which will begin service in May from Philadelphia, one of US Airways' three hubs.
CWA- US Airways has a very large cost advantage (at least $6,000 per agent per year) over Southwest Airlines passenger service salaries, benefits and workrules.
NYT- Union leaders initially resisted the airline's bid for a third round of cuts, declaring that "the concessions stand is closed. In response, the airline hired Morgan Stanley to find bidders for a series of major assets, including US Airways' East Coast shuttle and one of its three hubs, which include Pittsburgh and Charlotte, N.C., in addition to Philadelphia.
CWA- The sale of US Airways assets would be a major betrayal of employee trust and confidence by executives.
Employees did not make a $1.3 billion concession/investment in this airline just to see it sold off in pieces for a short-term financial strategy.
NYT- Though formal bargaining has yet to begin, union officials met on Feb. 6 with US Airways executives to hear an outline of what the company was proposing.
CWA- There was no new business plan presented at the Feb. 6 meeting.
Management presented slides (see attached) showing they want pay, seniority and benefits to be reduced to and America West levels.
They didn’t present any plans or proposals to achieve that.
NYT- US Airways said its overall costs in 2003 averaged 10.22 cents a seat mile, which analysts say is the highest in the airline industry. Executives told labor leaders that they wanted to cut costs by four cents a mile, to roughly six cents a mile, which the airline said was the average cost for low-fare competitors, including Southwest, JetBlue Airways and America West.
CWA- Costs per seat mile - has it gone up recently?
If so, how could that happen when labor costs have not increased - we have had no pay raise, employee medical premiums have increased, and more stations have gone Express?
Third Quarter 2003 cost per available seat mile = 9.7¢.
Fourth Quarter 2003 cost per available seat mile = 9.91¢.
NYT- To help achieve the four cents a mile savings, US Airways proposed that labor groups grant concessions equal to roughly two cents a mile. According to the presentation, employees would grant concessions equal to 0.9 cents a mile in wages, 0.7 cents a mile in productivity gains and another 0.4 cents in wage cuts.
CWA- Management has made no proposal to CWA to cut salaries, benefits, seniority rights or workrules.
Again, they spoke only in generalities at the February 6 meeting.
CWA has no contract negotiations underway or scheduled with US Airways management.
NYT- The company, for its part, is promising to cut its operating costs by one cent a mile, its distributing and marketing costs by 0.4 cents a mile, and other costs by 0.2 cents a mile.
CWA- We have never heard the company "promise" any such thing.
We have heard of no specific operating cost savings proposal, and we don’t know how we could enforce such a promise if it was made.
NYT- Amy Kudwa, an airline spokeswoman, declined to say what those savings would yield in dollar amounts. She called the figures "a broad look at what we would need."
CWA- This sounds more accurate.
Everything we have heard from management to date amounts to "a broad look at what we would need," from a management point of view.
Several agents have expressed concern, after reading a February 17 New York Times article, that there may be passenger service concessions negotiations going on with US Airways management. That is not the case - there have been no CWA negotiations with management and if any negotiation meeting is scheduled our members will be informed in advance of that meeting and a full report would be issued following the meeting. That is our policy.
Below is the information from the New York Times article with CWA's remarks on each relevant point.
New York Times Article
NYT- US Airways, which is based in Arlington, Va., emerged from bankruptcy last spring. The airline said in December that it had to rip up its business plan because it was not achieving results that would allow it to stay in compliance with $900 million in federal loan guarantees that formed the basis of its restructuring.
CWA- US Airways management wants to "rip up its business plan?"
Twice we have made major salary, benefit and workrule concessions based on management’s assurances that their business plans will lead to greater job security and a "soft landing" as the company is restructured. We expect those agreements to be honored.
NYT- The airline faces a stiff challenge from low-fare carriers, particularly Southwest Airlines, which will begin service in May from Philadelphia, one of US Airways' three hubs.
CWA- US Airways has a very large cost advantage (at least $6,000 per agent per year) over Southwest Airlines passenger service salaries, benefits and workrules.
NYT- Union leaders initially resisted the airline's bid for a third round of cuts, declaring that "the concessions stand is closed. In response, the airline hired Morgan Stanley to find bidders for a series of major assets, including US Airways' East Coast shuttle and one of its three hubs, which include Pittsburgh and Charlotte, N.C., in addition to Philadelphia.
CWA- The sale of US Airways assets would be a major betrayal of employee trust and confidence by executives.
Employees did not make a $1.3 billion concession/investment in this airline just to see it sold off in pieces for a short-term financial strategy.
NYT- Though formal bargaining has yet to begin, union officials met on Feb. 6 with US Airways executives to hear an outline of what the company was proposing.
CWA- There was no new business plan presented at the Feb. 6 meeting.
Management presented slides (see attached) showing they want pay, seniority and benefits to be reduced to and America West levels.
They didn’t present any plans or proposals to achieve that.
NYT- US Airways said its overall costs in 2003 averaged 10.22 cents a seat mile, which analysts say is the highest in the airline industry. Executives told labor leaders that they wanted to cut costs by four cents a mile, to roughly six cents a mile, which the airline said was the average cost for low-fare competitors, including Southwest, JetBlue Airways and America West.
CWA- Costs per seat mile - has it gone up recently?
If so, how could that happen when labor costs have not increased - we have had no pay raise, employee medical premiums have increased, and more stations have gone Express?
Third Quarter 2003 cost per available seat mile = 9.7¢.
Fourth Quarter 2003 cost per available seat mile = 9.91¢.
NYT- To help achieve the four cents a mile savings, US Airways proposed that labor groups grant concessions equal to roughly two cents a mile. According to the presentation, employees would grant concessions equal to 0.9 cents a mile in wages, 0.7 cents a mile in productivity gains and another 0.4 cents in wage cuts.
CWA- Management has made no proposal to CWA to cut salaries, benefits, seniority rights or workrules.
Again, they spoke only in generalities at the February 6 meeting.
CWA has no contract negotiations underway or scheduled with US Airways management.
NYT- The company, for its part, is promising to cut its operating costs by one cent a mile, its distributing and marketing costs by 0.4 cents a mile, and other costs by 0.2 cents a mile.
CWA- We have never heard the company "promise" any such thing.
We have heard of no specific operating cost savings proposal, and we don’t know how we could enforce such a promise if it was made.
NYT- Amy Kudwa, an airline spokeswoman, declined to say what those savings would yield in dollar amounts. She called the figures "a broad look at what we would need."
CWA- This sounds more accurate.
Everything we have heard from management to date amounts to "a broad look at what we would need," from a management point of view.
