Health Benefits May Be Killed - Article

Justme

Veteran
Feb 29, 2004
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By Steve Halvonik
TRIBUNE-REVIEW
Saturday, July 31, 2004


US Airways wants to wipe out all medical and prescription drug coverage for ramp, gate and reservations agents, according a proposal the company gave to the Communications Workers of America at a negotiation session this week.
It also wants to slash pension contributions by up to 70 percent and impose a wage scale identical to that of low-cost airline America West, which would slash the top pay rate by 30 percent, from $20.05 to $13.10 an hour.

The nine-page proposal, reviewed by the Pittsburgh Tribune-Review, represents US Airways' suggestions on how the union can reach the company's savings goal of $295 million a year.

The company is seeking $800 million in wage and fringe benefits cuts from its unionized workers as part of a $1.5 billion restructuring to restore profitability. Company executives have said that unions must ratify new contracts by September to avoid Chapter 11 bankruptcy reorganization -- a step that could lead to the nullification of all labor contracts.





CWA negotiators were "insulted" by the company's proposal, said Chris Fox, president of CWA Local 13302 in Pittsburgh and a member of the union's bargaining team.

"We didn't feel this was negotiating in good faith," she said.

Nevertheless, the CWA's negotiating team will meet Tuesday at union headquarters in Washington, D.C., to discuss a response to US Airways' proposal. Fox said she believed it was in the union's best interest to continue engaging the company in discussions -- "but they have to be more reasonable."

A company spokesman declined to comment yesterday.

US Airways' proposal called for phasing out medical and dental coverage for all present and future CWA employees over three years, ending in 2007. It also proposed terminating all medical and dental coverage for present retirees, effective Jan. 1. Retirees' prescription coverage would end Jan. 1, 2006.

The company also demanded major cuts in contributions to the CWA's defined contribution retirement plan. The company wants to reduce its 401(k) contribution to a flat 3 percent for all employees, effective Jan. 1.

Under the present contract, the company makes escalating payments based on an employee's age: 4 percent for those 18 to 34 years old; 6 percent for 35-44; 8 percent for 45-54; and 10 percent for those 55 and older.

The company also offered a watered-down version of an employee-buyout plan that the union had requested.

Those accepting the buyout would receive $5,000 cash for five to nine years' service; $10,000 for 10-14 years' service; and $15,000 for 15 or more years of service. They also would receive medical coverage for up to one year after leaving the company.

Fox said the company would like up to 25 percent of its 6,000 CWA members to volunteer for the buyout. Those who decline would keep their jobs but have their salaries reduced to the America West pay scale.

The buyout will have limited appeal to workers between ages 55 and 63 because of the limited medical coverage, Fox said.

She claimed the company's proposal would reduce CWA employees to working poor, and added, "We're not going where they want to go."

Also yesterday, US Airways Chief Executive Officer Bruce Lakefield thanked employees for helping the company post a $34 million net profit in the second quarter. Lakefield had angered some union officials earlier in the week when he failed to publicly acknowledge employees' contributions to the company's $34 million net profit for the second quarter.

US Airways stock closed yesterday at $2.90, up 21 percent for the week.


Steve Halvonik can be reached at [email protected] or (412) 320-7993.
 
I find this to be shocking. A simple broken arm can wind up into $5,000 worth of doctors bills. Is this really accurate? Is there any precedence in this industry for no health benefits? There must be something missing from my understanding....
 
While I am not surprised by the co. proposal, since insanity seems to rule the day in ccy. I am offended that the CWA would continue to meet again. There is no evidence of "good faith negotiating" with these people.
 
Justme said:
By Steve Halvonik
TRIBUNE-REVIEW
Saturday, July 31, 2004

US Airways wants to wipe out all medical and prescription drug coverage for ramp, gate and reservations agents, according a proposal the company gave to the Communications Workers of America at a negotiation session this week.
This statement is not factual. The elimination proposal only applies to retirees.
 
I understand the costs of Health Benefits increasing, and would be more than happy to accept a reasonable increase in premiums...HOWEVER....After having given up scholarships and many opportunities for this company, beginning in 1967, because I agreed to work under certain conditions for a compensation package which was to include retirement benefits...then to have the pension discontinued in the early 90's with not much time to invest in a 401 before retirement...then to retire June 1 of this year, only to find that not only will I no longer have health insurance until Medicare (another 10 years...), I won't even have access to it through the company I dedicated my entire working years to..even at an increased rate....and I believe, as a retiree, that I have no vote...As I told my therapist the other day,....yes, I was very bright, very intelligent as a youngster...but not very smart, and obviously, quite naive to believe that, if I fulfilled my part..worked hard...hung in there during the bad times, etc,...the company would keep their part of the agreement... Bad karma from a previous life?...Good lesson for my two daughters?...You all BE CAREFUL..it's not just today that you need to worry about...We may all live another 30years after "retirement" and it appears we are really on our own...Anyone got any of those "Marry Me, Fly for Free" t-shirts left?...or does that only apply for on-line flights, for which you need on-line flights operating....
 
Zeus said:
This statement is not factual. The elimination proposal only applies to retirees.
Along those lines, has any consideration been given to elimination of medical benefits to retired US Airways executives? :huh:
 
Good post Wizzz

What about this last round of job cuts?. Again, employees having to make carreer decisions, without any solid information. Do they take the furlough and get severance and unemployment. That's much more than a 15,000 buyout. Or do they transfer or downgrade to parttime, only to take a 30pct paycut and lose their medical anyway. The CWA needs to take a stand with the company, and do what's right for the employees. They both have their own agenda and it doesn't include the employees. I'm afraid this is all just a game between the company and the unions. Only thing the employees should do is vote no. How sad, I saw it in Dayton, Oh in the early 70's with NCR. Men and women with over 30 years, only to see the company shut the doors. My heart goes out to every active and furloughed employee with USAirways. This is all too sad!
 
I would strongly suggest that those of you who are furloughed or retired write to your Local President and to Rick Braswell and Morton Bahr and let them know your thoughts on the current company and CWA proposals. I've seen some of the letters that have been sent in from fellow agents and I know they must be getting an ear full. If you dont speak for yourselves, no one will. If you want the emails give me a holler.
 
Thanks tadjr...would like the e-mails and will voice my opinion, but I believe that once one leaves the fold by way of retirement, their major concern is for active, voting members...even tho those also will someday become inactive and will have some of their decisions come back to bite them...
 
mweiss said:
Along those lines, has any consideration been given to elimination of medical benefits to retired US Airways executives? :huh:
There's a lot more than medical expenses that needs to be looked at for retired executives.......i.e. space positive first class travel for the retired executive and spouse. While we are at it, take a look at the active executives and their familes. If nothing else, those f/c seats could be sold in the first up program. :angry:
 
Not a damn issue surprises me any longer!

Oh I see, "They want to do away with our med/dental bennies" But you can be damn sure "THEY KEEP THEIRS PLUS"!..

Pull all Space Positive seating, Let them sit in the back in center seats...like the working stiffs do..

This company is DISGUSTING>>


Me thinks our local media would grab this and many many other tid bits of info-but then again..
The company doesn't give a damn...Any ya know what??

Neither do I!!

$CREW THEM!!
 
THIS ARTICLE FROM THE POST-GAZETTE IS SIMPLY NOT TRUE. THEY HAVE NEVER
PRINTED ANYTHING GOOD ABOUT USAIWAYS EVEN DURING THE PROSPEROUS YEARS WHEN THERE WAS PLENTY OF GOOD NEWS TO GO AROUND. THIS IS JUST ONE
REPORTER TRYING TO STIR UP MORE DISCONTENT IN THE WORKPLACE. AS IF DAVE
DIDN'T DO ENOUGH TO LAST A WHILE. I SUGGEST WE FLOOD THIS REPORTER WITH
EMAILS.
 
golden1 said:
Not a damn issue surprises me any longer!

Oh I see, "They want to do away with our med/dental bennies" But you can be damn sure "THEY KEEP THEIRS PLUS"!..

Pull all Space Positive seating, Let them sit in the back in center seats...like the working stiffs do..

This company is DISGUSTING>>


Me thinks our local media would grab this and many many other tid bits of info-but then again..
The company doesn't give a damn...Any ya know what??

Neither do I!!

$CREW THEM!!
Golden 1: I love your posts. :up: :up: :up: I have read you posts for the last few months and i can say, that I support you and what your job is 100%. You are a great poster. :up: :up: :up:
 
QUOTE (Justme @ Jul 31 2004, 05:05 AM)
By Steve Halvonik
TRIBUNE-REVIEW
Saturday, July 31, 2004

US Airways wants to wipe out all medical and prescription drug coverage for ramp, gate and reservations agents, according a proposal the company gave to the Communications Workers of America at a negotiation session this week.


zues said
""This statement is not factual. The elimination proposal only applies to retirees.""

If It is the current retirees it will affect future retirees, There is NO reason for the CWA to Continue talking with this Co. Too much as already been given up in the last 2 rounds.