www.cwa.net 2/27/2004
CEO Dave Siegel says res salaries are a problem and he claims JetBlue has it right paying $9 per hour...
Dave Siegel's February 25 speech at a DC area executives' club outlined his claim that US Airways is "burdened by high labor costs." He gave only one example of excessive hourly pay - that was the US Airways Res Sales Reps. He said:
"Even with pay cuts secured during the restructuring process, we pay our telephone reservations agents a base pay of about $21 per hour, plus a very generous benefits package...But JetBlue is paying their telephone agents $9 per hour with modest benefits."
Mr. Siegel's figure for US Airways Reservations Sales Representatives is inaccurate (top base rate is $20.05, not $21), so we assume his figure for JetBlue is also inaccurate. To focus on some of the most highly productive revenue producers working in one of the most stressful environments in the company is unacceptable. We call on Mr. Siegel to apologize for his off-hand remarks.
The second major point of Dave Siegel's speech is that he wants lower employee salary and benefit costs so that US Airways will be easier to sell when the inevitable consolidation comes. He said:
"When the inevitable forces of consolidation kick in, it is equally important that we have a competitive cost structure. Otherwise, we will be the awkward teenager at the school dance, hoping someone will come talk to us, but going home disappointed and lonely." On other occasions Dave Siegel has gone out of his way to say, "Other airlines may want to buy some of our assets, but they sure don't want our employees."
This speech is our first look at the "New Business Plan" and we don't like it. We are not awkward teenagers, we are skilled, hard-working adults who have put years of service into this airline.
We contributed to the $1.3 Billion worth of concessions to save this airline from the mistakes of its executives. Our pay, benefits and work rules are fully competitive, and management should take the cost advantages we have provided and get busy competing in the market instead of blaming the employees for the shortcomings of the "Old Business Plan."
Go to www.cwa.net for the full text of the speech>
CWA Update Report from the 2-26-04 monthly
union/management meeting...
CWA local presidents and staff met on Thursday, February 26, in Crystal City with labor relations and operations management to review and discuss our outstanding issues. These were the items discussed.
Electronic Boarding Pass Readers - CWA'ers learned from the US Airways web cast to industry stock analysts that management intends to install bar-code boarding pass readers at the gates. We questioned management about this and asked for the following information:
* Which stations will receive the readers? Answer: The "top 22 cities" will receive the readers beginning in June."
* What is the staffing impact - will this lead to more furloughs? Answer: "We haven't really determined that, "We don't know at this point," "It depends on a lot of things."
* Do you intend to reduce staffing when you install the readers? Answer: "We haven't really determined that, "We don't know at this point," "It depends on a lot of things."
CWA'ers raised the point that management is required by our contract to meet with us in advance of installing new technology to discuss efforts to minimize its impact on staffing. Management acknowledged that they have that obligation and a meeting will be set up. CWA'ers said that we will be presenting an early-out and/or voluntary furlough proposal at that meeting. We also requested projected employment figures for passenger service for 2004-2005. Management said they will review that request.
Management New Plan to "Lower Distribution Costs" - This is usually management code for reducing res. There had been suggestions by some in management that driving customers from travel agencies back to US Airways would reduce distribution costs, and might coincidentally increase res job security or employment.
When questioned at this meeting, management said that would not be the case. They foresee driving more business to the web rather than to res. Res is in overtime status presently and employment is expected to remain fairly steady for the foreseeable future according to res officials at the meeting.
So, it seems that the new plan to lower distribution costs is neither a plus nor a minus for res employment. Management stated, however, that long-term res employment would decline due to increased reliance on Internet sales.
Res Stats, are they counter-productive? - CWA'ers pointed out that those with the highest Tickets-Per-Call ratings are not those with the lowest Average-Talk-Time, and that the reps are under constant stress and pressure to reduce Average-Talk-Time. The CWA'ers suggested strongly that the press for lower ATT is not only bordering on inhumane, it is also undermining the sales performance and the ability to generate revenue.
Management acknowledged that the constraints are to use the fewest number of employees to staff res and to utilize their time to the fullest. Management asserted that within those constraints their ATT demands were cost-effective.
Management also stated that very few people run afoul of the ATT standards. They stated that, "If the standard for a call is 300 seconds, and the rep is averaging 350 seconds, we don't intervene. If they are averaging 800 seconds, then we'll intervene." Res CWA'ers present disputed that assertion and said the stress and pressure is much more widespread than management was acknowledging. Both parties agreed to continue this discussion focusing on specific cases.
1099's Sent to Furloughees - Several furloughees have approached CWA with form 1099's showing very large amounts of tax due on pass travel. The amounts are far in excess of what the furloughee actually traveled. Since 1099's do not list the travel being taxed, we asked how employees can verify these forms and check them against their travel records.
Management stated that the Employee Travel Office will be instructed to provide the employee with a print-out of his or her record of travel for verification purposes. If you question the amount listed for employee travel benefits on your 1099 call the Employee Travel Office for verification.
FLL Adding Four CAR Positions and Reducing Flights - CWA'ers questioned whether adding 4 CAR positions at FLL at the same time flights are being reduced just amounts to replacing CSA's with CAR's in violation of the assurances of Labor Relations management that that would not happen. Management replied that they had not decided to reduce CSA's at FLL when the flights are reduced, and that it would not necessarily happen. Management said they would give us that information when it becomes available.
Incremental repayment of payroll overages - CWA'ers discussed situations (recently Portland) where a station goes Express in the middle of a payroll period, and the agents are paid at the higher Mainline rate for the full two weeks. The company has stated the overpayment must be deducted from the next check. That often causes hardship, and management at our meeting agreed that incremental payment can be worked out in those situations when requested by the employee.
CWA Local Presidents and Staff
CEO Dave Siegel says res salaries are a problem and he claims JetBlue has it right paying $9 per hour...
Dave Siegel's February 25 speech at a DC area executives' club outlined his claim that US Airways is "burdened by high labor costs." He gave only one example of excessive hourly pay - that was the US Airways Res Sales Reps. He said:
"Even with pay cuts secured during the restructuring process, we pay our telephone reservations agents a base pay of about $21 per hour, plus a very generous benefits package...But JetBlue is paying their telephone agents $9 per hour with modest benefits."
Mr. Siegel's figure for US Airways Reservations Sales Representatives is inaccurate (top base rate is $20.05, not $21), so we assume his figure for JetBlue is also inaccurate. To focus on some of the most highly productive revenue producers working in one of the most stressful environments in the company is unacceptable. We call on Mr. Siegel to apologize for his off-hand remarks.
The second major point of Dave Siegel's speech is that he wants lower employee salary and benefit costs so that US Airways will be easier to sell when the inevitable consolidation comes. He said:
"When the inevitable forces of consolidation kick in, it is equally important that we have a competitive cost structure. Otherwise, we will be the awkward teenager at the school dance, hoping someone will come talk to us, but going home disappointed and lonely." On other occasions Dave Siegel has gone out of his way to say, "Other airlines may want to buy some of our assets, but they sure don't want our employees."
This speech is our first look at the "New Business Plan" and we don't like it. We are not awkward teenagers, we are skilled, hard-working adults who have put years of service into this airline.
We contributed to the $1.3 Billion worth of concessions to save this airline from the mistakes of its executives. Our pay, benefits and work rules are fully competitive, and management should take the cost advantages we have provided and get busy competing in the market instead of blaming the employees for the shortcomings of the "Old Business Plan."
Go to www.cwa.net for the full text of the speech>
CWA Update Report from the 2-26-04 monthly
union/management meeting...
CWA local presidents and staff met on Thursday, February 26, in Crystal City with labor relations and operations management to review and discuss our outstanding issues. These were the items discussed.
Electronic Boarding Pass Readers - CWA'ers learned from the US Airways web cast to industry stock analysts that management intends to install bar-code boarding pass readers at the gates. We questioned management about this and asked for the following information:
* Which stations will receive the readers? Answer: The "top 22 cities" will receive the readers beginning in June."
* What is the staffing impact - will this lead to more furloughs? Answer: "We haven't really determined that, "We don't know at this point," "It depends on a lot of things."
* Do you intend to reduce staffing when you install the readers? Answer: "We haven't really determined that, "We don't know at this point," "It depends on a lot of things."
CWA'ers raised the point that management is required by our contract to meet with us in advance of installing new technology to discuss efforts to minimize its impact on staffing. Management acknowledged that they have that obligation and a meeting will be set up. CWA'ers said that we will be presenting an early-out and/or voluntary furlough proposal at that meeting. We also requested projected employment figures for passenger service for 2004-2005. Management said they will review that request.
Management New Plan to "Lower Distribution Costs" - This is usually management code for reducing res. There had been suggestions by some in management that driving customers from travel agencies back to US Airways would reduce distribution costs, and might coincidentally increase res job security or employment.
When questioned at this meeting, management said that would not be the case. They foresee driving more business to the web rather than to res. Res is in overtime status presently and employment is expected to remain fairly steady for the foreseeable future according to res officials at the meeting.
So, it seems that the new plan to lower distribution costs is neither a plus nor a minus for res employment. Management stated, however, that long-term res employment would decline due to increased reliance on Internet sales.
Res Stats, are they counter-productive? - CWA'ers pointed out that those with the highest Tickets-Per-Call ratings are not those with the lowest Average-Talk-Time, and that the reps are under constant stress and pressure to reduce Average-Talk-Time. The CWA'ers suggested strongly that the press for lower ATT is not only bordering on inhumane, it is also undermining the sales performance and the ability to generate revenue.
Management acknowledged that the constraints are to use the fewest number of employees to staff res and to utilize their time to the fullest. Management asserted that within those constraints their ATT demands were cost-effective.
Management also stated that very few people run afoul of the ATT standards. They stated that, "If the standard for a call is 300 seconds, and the rep is averaging 350 seconds, we don't intervene. If they are averaging 800 seconds, then we'll intervene." Res CWA'ers present disputed that assertion and said the stress and pressure is much more widespread than management was acknowledging. Both parties agreed to continue this discussion focusing on specific cases.
1099's Sent to Furloughees - Several furloughees have approached CWA with form 1099's showing very large amounts of tax due on pass travel. The amounts are far in excess of what the furloughee actually traveled. Since 1099's do not list the travel being taxed, we asked how employees can verify these forms and check them against their travel records.
Management stated that the Employee Travel Office will be instructed to provide the employee with a print-out of his or her record of travel for verification purposes. If you question the amount listed for employee travel benefits on your 1099 call the Employee Travel Office for verification.
FLL Adding Four CAR Positions and Reducing Flights - CWA'ers questioned whether adding 4 CAR positions at FLL at the same time flights are being reduced just amounts to replacing CSA's with CAR's in violation of the assurances of Labor Relations management that that would not happen. Management replied that they had not decided to reduce CSA's at FLL when the flights are reduced, and that it would not necessarily happen. Management said they would give us that information when it becomes available.
Incremental repayment of payroll overages - CWA'ers discussed situations (recently Portland) where a station goes Express in the middle of a payroll period, and the agents are paid at the higher Mainline rate for the full two weeks. The company has stated the overpayment must be deducted from the next check. That often causes hardship, and management at our meeting agreed that incremental payment can be worked out in those situations when requested by the employee.
CWA Local Presidents and Staff
