Cwa Update 3/10

tadjr

Veteran
Aug 19, 2002
3,511
100
TPA
www.airlineforums.com
www.cwa.netCWA Update March 10 '04 www.cwa.net

Are further passenger service concessions justified?
CWA Research Dept. compared the salaries, benefits and workrules of Southwest Airlines' passenger service group with those of our US Airways passenger service group to learn whether our execs are right when they say we're overpaid and non-competitive compared to a "Low Cost Carrier."
Our conclusion: Southwest Airlines - the most successful airline in the country, the airline that our management fears most (PHL) - has a passenger service cost per agent that is much higher than US Airways'. There is no reason whatever for US Airways execs to complain about our passenger service employee costs. Thanks to our concessions, our execs have a very large passenger service employee cost advantage over Southwest.
Download the attached .pdf or .ppt file below for all the data and charts that spell out the full passenger service comparison between US Airways and Southwest. The information is also posted at www.cwa.net
Chart not shown here. USAirways cost per agent $47,312
Southwest cost per agent $ 53,278
Difference $5,966
*Does not include health and retirement which are comparable between the two airlines.


Are "merit" pay raises for management justified?
That's a question that doesn't even have to be asked - even the management memo announcing the raise states, "Some may be wondering how we are able to afford this merit increase given our need to reduce costs."
But we'll ask anyway: "How can a management team that is unable to guide this airline to profitability despite $1.3 billion in concessions from its employees "merit" a pay raise and an increase in holidays/personal days at the same time they're in the newspapers saying they intend to make further cuts in employee salaries and benefits?"
There are some very good managers in this company who are probably ashamed of this raise at this time. But "Lead-by-Example" is a concept that most US Airways execs and management don't seem to understand.


Is our CEO's $4.5 million golden parachute justified?
Some felt surprised and/or betrayed when reading in the Pittsburgh Post-Gazette that our CEO had negotiated (during the Bankruptcy) for a very large and unjustified golden parachute for himself, at the same time that the rest of us were negotiating our own salary and benefit cuts to save the airline.
We call on all our executives to repudiate any golden parachutes and under-the-table rewards they may have in their personal contracts. The comparison between a $4.5 million golden parachute on the one hand - and then our CEO's remarks that our res agents should only be paid $9 an hour on the other hand - is something passenger service employees will take into account next time management comes asking for concessions.
 
I agree with you guys, further cuts are not warranted. This thing Dave Siegel likes to say that we earn more and have better benefits then LLC’s is simply misinformation and not true as per your post, which can be verified.

This guy comes in here and makes sure he alone will reap millions while telling everyone lies and insisting we take cuts and more cuts. He has lost complete trust and credibility, and even if the pilots decide to be his charity boy again, without the other unions on board, it’s for naught.

I believe the only real reasonable solution is for Dave Siegel to take his blood money and leave and never look back. Then get in one of big Dave’s buddies who would at least have a slim change which is better than no change of getting the unions on board. Dave Siegel’s reign has run the course and it’s over for him and us if he stays on. This, of course, is my opinion, but barring a miracle can anyone else explain how it would come together otherwise? I don’t need another lecture from a few certain pilots on how we MUST do or die either, you guys don’t have a grasp on the real living pulse saying it will all work out because the unions MUST do, must do in this instance means death to U for sure.
 
tadjr,

"The Golden Parachutes" that are negotiated are every bit as much of an insult to the rank and file as the obscene levels of compensation and associated perks that are being awarded our upper tier.

IMHO....the executive levels need to being looking at themselves first when seeking changes and imbalance corrections of U Vs. the LCC's. I believe its been pointed out numerous times that Seigel is paid far better than the CEO's at Southwest , JetBlue and Airtran.

I would not expect anyone at JetBlue or Airtran to be paid on the same level as anyone else is this industry regardless of position for two very simple reasons.

(1) The length of time they have been an airline just for starters

(2) The overall size difference of JetBlue and Airtran in aircraft fleet size and employee numbers linked to the actual number of cities they happen to serve at present.

On the other hand , We have "Just call me Dave" asking for a 25% across the board reduction in costs. Yet we really never examine the actual problems that tend to produce these costs. 1.2 Billion was given back to them in wage concessions alone.....and frankly U still does what it has always done , only with far fewer people and aircraft.

"Just call me Dave" is also the CEO of the number 7 airline in the US..yet he's drawing compensation higher than the CEO of the number 3 airline in the US which is Delta. Delta's CEO at age 71 is asking for wage reform from within his company , most overtly and currently the pilots of DL....but he's not doing so while offering up non-union bonuses to the tune of $5 million all the while his company is still bleeding red ink.

Delta's CEO has taken the physical responsibilty of capping executive bonuses and compensation until things are corrected...and has himself taken a big pinch in earnings that he capped at $500,000 in a flat rate no perks scenario. This is leading by example and setting a tone that more will rally behind as opposed to scoffing at.


USAirways has had a history of self-serving leadership of late....and leadership (lose term) that lacks vision or the ability to effect positive change , yet they come and they go as I believe Dave hiself will in time...only thing is , they tend to go with multi-millions in their pockets having left smoke fire and distruction in their wake.


The labor groups in my opinion need to exercise their power and will in unison against whats taking place here , it's time to call their bluff , If Dave and Dave is really interested in U being a survivor? Then they need to accept the exact same things that they are asking of the rank and file. Like Delta's CEO...it's past time to lead by example. I firmly believe that their contracts for Golden Parachutes and bonuses need to be abrogated in the same fashion as the contracts they have with labor have been ignored and manipulated for the past two years....maybe then the two sides of the coin will have a common ground to speak on?
 
Management SHOULD GET a bonus based on performance. So who is the first high level exec. to go and run Philly? Do a good job we give you a bonus, fail and you are shown the door.
 
Hope777 said:
Management SHOULD GET a bonus based on performance. So who is the first high level exec. to go and run Philly? Do a good job we give you a bonus, fail and you are shown the door.
NO, management's entire compensation package should be based on performance. UAIR makes money, so do they. Lose money...... :rolleyes:
 
flyin2low said:
If they fail, we all are out the door! :eek:
Wake up!!!! They have been doing nothing but failing for the past 5 years or more.
Failing at our expense I might add. We have gave and gave again along with doing everything possible to increase productivity. When they shrink the network to a point where the concessions just cover the lost revenue, what can any of us do? The fantom 60 A/C should have came about at the end of CH-11, not when SWA is setting up shop in our backyard.
 
Looks like Seigel graduated from the Wolfe/Gangwel school of management: Get your parachute and fly the coop before the place burns down.
No wonder Dave said there was nothing he could do when those three got their $60 million. He didn't want to set a precedent because he knew he would be doing the same thing.

crazyincanton
 
Remember the comparison between Jet Blue agents and US agents. Our supposed $21 hr to their $9 hr. ? He made that remark because he was back peddling and that was the best he could do. For months he's been quoted saying our employees make more than WN. That no longer applies after two rounds of concessions. Now he's using a baby carrier to make comparisons.

When your customers repeatedly voice their disdain for your CEO, it becomes apparent that the CEO in question is a poor reflection on the company. Time and time again his deception and lies have been unmasked to the public.