CWA Update December 5, 2002
CWA Local Presidents, Staff and advisors met with US Airways executives and management on Wednesday, December 4, to discuss management’s urgent request for further concessions in light of worsening business conditions, the need to meet RSA covenants for bankruptcy financing, and the need to meet ATSB requirements for a government guaranteed loan. The weeks’ events underscored the crisis atmosphere: a US Airways Board of Directors meeting to determine the future course of the airline; a meeting with RSA at which questions about ownership and bankruptcy financing were discussed; a Creditors’ Committee meeting in New York; a second Board of Directors meeting (conference call) scheduled for Friday; and the rejection of the UAL ATSB loan application.
Management had made several demands for ‘productivity’ improvements and benefit changes as well as a proposal for emergency deferral of salary in the event of a US invasion of Iraq, to be repaid to employees in monthly installments. Such a war is widely expected to be devastating to the airline industry – possibly fatal to US Airways – with regard to loads, insurance and fuel prices.
CWA has stated to management that Passenger Service employees have already made extreme sacrifices for the emergency rescue of US Airways. There is no question that US Airways is in extreme financial crisis, and CWA-represented passenger service employees are not going to stand by and watch the airline go out of existence if there are additional reasonable and productive contributions we can make. But, we will not agree to crisis demands that jeopardize the long-term job security of passenger service (i.e. we will not agree to subcontracting our jobs to other companies or groups), and it is not acceptable that Executives refuse to make the same kind of personal sacrifices and pay and benefit cuts that employees are making to save the airline.
No agreements were reached at the December 4, meeting and discussions will resume next week. CWA’ers responded to the following management proposals:
Productivity: management often means subcontracting when they use the word productivity:
· We rejected management’s proposals to subcontract out the Dividend Miles Service Center;
· We rejected management’s proposal to subcontract out the Baggage Call Center;
· We rejected management’s proposal to allow 4 mainline flights per day at Express stations without staffing the station with mainline employees;
· And we rejected management’s proposal to allow SkyCaps to assist passengers with kiosk check-in.
We proposed to accept, in the context of an overall agreement:
· Management’s proposal to permit SAR’s to demonstrate the kiosk procedures to customers – this is currently exclusively CSA or CSS work. Under the proposal SAR’s may not to process bags behind the ticket counter or perform any other ticket counter functions;
· Management’s proposal to accept a delay in contract coverage for certain Caribbean stations that had not been covered to date;
· Management’s proposal to accept certain changes in management’s “Jet’s for Jobs†program, including a process for negotiating MidAtlantic Airways passenger service positions to go to US Airways mainline employees.
Benefits: We proposed to accept a new version of the US Airways medical/dental plan provided that:
· It would be an identical plan for all US Airways employees, including Executives, management, un-represented employees, and all represented employee groups. There would be one single plan for everybody who works at the airline.
· The premiums would be based on a sliding salary scale, regardless of employee group, with lower-paid employees paying lower premiums;
· All terms of the plan, including retiree health coverage, would be identical for all employees.
· Any future improvements or additions to the plan offered to any individuals or groups of employees would have to be offered to passenger service employees on the same basis.
War emergency:
· We proposed to accept, with certain modifications, management’s request for a 5% pay deferment, to be repaid in monthly installments, in the event of a US ground war invasion of Iraq.
Returns:
· Management is proposing another profit sharing plan (in addition to the stock distribution plan we agreed to in the concession discussions). We made proposals to change management’s offer to bring it into line with passenger service realities. The potential value of that plan is being studied by our advisors, but it is unlikely to be a bonanza for employees.
· We proposed to suspend the Defined Benefit Pension Plan search until six months after US Airways comes out of bankruptcy. We feel it is safer to keep company retirement contributions going directly into your current retirement account until the future viability of the airline is more certain.
· We propose to permit retirement from voluntary furlough, just as our contract permits retirement from regular furlough;
· We proposed that pass travel for “eligible family members†include mother and father for all furloughees.
We will keep you posted of developments as they occur.
CWA Local Officers and Staff
CWA Local Presidents, Staff and advisors met with US Airways executives and management on Wednesday, December 4, to discuss management’s urgent request for further concessions in light of worsening business conditions, the need to meet RSA covenants for bankruptcy financing, and the need to meet ATSB requirements for a government guaranteed loan. The weeks’ events underscored the crisis atmosphere: a US Airways Board of Directors meeting to determine the future course of the airline; a meeting with RSA at which questions about ownership and bankruptcy financing were discussed; a Creditors’ Committee meeting in New York; a second Board of Directors meeting (conference call) scheduled for Friday; and the rejection of the UAL ATSB loan application.
Management had made several demands for ‘productivity’ improvements and benefit changes as well as a proposal for emergency deferral of salary in the event of a US invasion of Iraq, to be repaid to employees in monthly installments. Such a war is widely expected to be devastating to the airline industry – possibly fatal to US Airways – with regard to loads, insurance and fuel prices.
CWA has stated to management that Passenger Service employees have already made extreme sacrifices for the emergency rescue of US Airways. There is no question that US Airways is in extreme financial crisis, and CWA-represented passenger service employees are not going to stand by and watch the airline go out of existence if there are additional reasonable and productive contributions we can make. But, we will not agree to crisis demands that jeopardize the long-term job security of passenger service (i.e. we will not agree to subcontracting our jobs to other companies or groups), and it is not acceptable that Executives refuse to make the same kind of personal sacrifices and pay and benefit cuts that employees are making to save the airline.
No agreements were reached at the December 4, meeting and discussions will resume next week. CWA’ers responded to the following management proposals:
Productivity: management often means subcontracting when they use the word productivity:
· We rejected management’s proposals to subcontract out the Dividend Miles Service Center;
· We rejected management’s proposal to subcontract out the Baggage Call Center;
· We rejected management’s proposal to allow 4 mainline flights per day at Express stations without staffing the station with mainline employees;
· And we rejected management’s proposal to allow SkyCaps to assist passengers with kiosk check-in.
We proposed to accept, in the context of an overall agreement:
· Management’s proposal to permit SAR’s to demonstrate the kiosk procedures to customers – this is currently exclusively CSA or CSS work. Under the proposal SAR’s may not to process bags behind the ticket counter or perform any other ticket counter functions;
· Management’s proposal to accept a delay in contract coverage for certain Caribbean stations that had not been covered to date;
· Management’s proposal to accept certain changes in management’s “Jet’s for Jobs†program, including a process for negotiating MidAtlantic Airways passenger service positions to go to US Airways mainline employees.
Benefits: We proposed to accept a new version of the US Airways medical/dental plan provided that:
· It would be an identical plan for all US Airways employees, including Executives, management, un-represented employees, and all represented employee groups. There would be one single plan for everybody who works at the airline.
· The premiums would be based on a sliding salary scale, regardless of employee group, with lower-paid employees paying lower premiums;
· All terms of the plan, including retiree health coverage, would be identical for all employees.
· Any future improvements or additions to the plan offered to any individuals or groups of employees would have to be offered to passenger service employees on the same basis.
War emergency:
· We proposed to accept, with certain modifications, management’s request for a 5% pay deferment, to be repaid in monthly installments, in the event of a US ground war invasion of Iraq.
Returns:
· Management is proposing another profit sharing plan (in addition to the stock distribution plan we agreed to in the concession discussions). We made proposals to change management’s offer to bring it into line with passenger service realities. The potential value of that plan is being studied by our advisors, but it is unlikely to be a bonanza for employees.
· We proposed to suspend the Defined Benefit Pension Plan search until six months after US Airways comes out of bankruptcy. We feel it is safer to keep company retirement contributions going directly into your current retirement account until the future viability of the airline is more certain.
· We propose to permit retirement from voluntary furlough, just as our contract permits retirement from regular furlough;
· We proposed that pass travel for “eligible family members†include mother and father for all furloughees.
We will keep you posted of developments as they occur.
CWA Local Officers and Staff
