Hot off the wire


Sep 9, 2002
November 26, 2002
To IAM Members at US Airways,
Representatives from Districts 141 & 141-M, and the US Airways Labor Coalition met with US Airways¡¦ management today to discuss the carrier¡¦s worsening financial crisis.
US Airways¡¦ management notified the employee representatives that an additional $200 million in annual cost reductions from changes in work rules and benefits are needed to help the bankrupt carrier improve its operations.
US Airways¡¦ targeted cost reductions from District 141-M members include:
„h Elimination of aircraft receipt and dispatch by Mechanic & Utility employees.
„h Reduce the Utility function at PIT, CLT, and PHL to only thru-flight cleaning.
„h Outsource lavatory and potable water servicing.
„h Discontinue using Mechanics to de-ice aircraft.
„h Outsource plant maintenance work.
„h Outsource Ground Equipment maintenance (GSE) from all stations except BOS, CLT, LGA, PIT, and PHL.
„h Daily maintenance checks to be performed by vendors.
„h Eliminate occupational injury (OJI) bank.
„h Delete real estate provisions in plant closings.
„h Eliminate the two percent 401(k) match.
>From District 141 members, US Airways is seeking to:
„h Outsource aircraft catering without restriction.
„h Outsource mail and cargo operations.
„h Remove Fleet Service employees from Class II stations with less than 28 flights weekly.
„h Add four daily mainline flights at Class II stations without adding Fleet Service personnel.
„h Add seasonal mainline flights to express stations.
Additionally, US Airways is seeking the following changes that would affect all IAM members:
„h Double employee contributions for medical benefits.
„h Mid Atlantic contract provisions to mirror those at American Eagle.
„h In case the United States goes to war with Iraq, US Airways will seek an immediate five percent ¡§wage deferral¡¨ for up to 18 months.
In return, the company proposes to maintain a minimum of 279 aircraft and offered an ¡§enhanced¡¨ profit sharing plan for participating employees.
Additionally, US Airways hastily closed its Tampa, Florida maintenance facility early this morning, forcing more than 500 IAM members out of work two days before Thanksgiving. IAM attorneys are looking into the legality of the closing.
A conference call between Union Coalition members and US Airways management to obtain further details of management¡¦s plan will take place tomorrow morning. Labor Coalition members will discuss US Airways¡¦ condition in a conference call on Friday, November 29, 2002.
When IAM members recently ratified modifications to their US Airways agreements, it came with the company¡¦s assurance that the revisions were all US Airways needed to successfully emerge from bankruptcy. The leadership of Districts 141 and 141-M are in agreement that additional changes to our collective bargaining agreements are not acceptable, as the company has not established that such revisions are justified. IAM members have already answered US Airways¡¦ distress call, and acted responsibly. US Airways needs to work within the framework they designed to find solutions to their latest situation.
We will keep you updated as developments occur.
Sincerely and fraternally,
S.R. (Randy) Canale
President and General Chairman
District 141
Scotty Ford
President and General Chairman
District 141-M