To District 141-M Members at US Airways:
Dear Sisters and Brothers,
When US Airways presented its restructuring proposal, which the membership voted to accept this past September, the airline made assurances that the proposed terms were all it would need to successfully restructure and emerge from bankruptcy. Yet just two months later, the company closed its Tampa, FL maintenance base and has laid off hundreds of our members in order to achieve additional cost reductions. Furthermore, the airline is seeking the ability to farm out maintenance work, costing even more members their jobs.
While in bankruptcy, US Airways is receiving Debtor In Possession (DIP) financing from the Retirement Systems of Alabama (RSA). David Bronner, RSA’s Chief Executive Officer, said in a recent interview that further employee sacrifice is needed in order for his group to continue providing financing to US Airways.
The financial condition of US Airways is indeed worsening. Since Mr. Bronner has publicly raised the possibility of withdrawing his funding, the prospect of the airline being forced to liquidate and cease to exist must be addressed.
Due to the potential for liquidation, District 141-M and District 141 representatives will discuss the condition of the airline with US Airways’ management on Monday, December 9, 2002. We believe that any additional cost savings must come from within the framework of our current agreement.
We all know the history. TWA, Pan Am, Eastern Airlines, and Braniff are no longer in existence. More than enough airlines have folded, abandoning workers and their families. The IAM is committed to prevent such a fate from occurring at US Airways.
As always, the membership will be advised of any new developments.
Sincerely and fraternally,
Scotty Ford
President
IAM District 141-M
Dear Sisters and Brothers,
When US Airways presented its restructuring proposal, which the membership voted to accept this past September, the airline made assurances that the proposed terms were all it would need to successfully restructure and emerge from bankruptcy. Yet just two months later, the company closed its Tampa, FL maintenance base and has laid off hundreds of our members in order to achieve additional cost reductions. Furthermore, the airline is seeking the ability to farm out maintenance work, costing even more members their jobs.
While in bankruptcy, US Airways is receiving Debtor In Possession (DIP) financing from the Retirement Systems of Alabama (RSA). David Bronner, RSA’s Chief Executive Officer, said in a recent interview that further employee sacrifice is needed in order for his group to continue providing financing to US Airways.
The financial condition of US Airways is indeed worsening. Since Mr. Bronner has publicly raised the possibility of withdrawing his funding, the prospect of the airline being forced to liquidate and cease to exist must be addressed.
Due to the potential for liquidation, District 141-M and District 141 representatives will discuss the condition of the airline with US Airways’ management on Monday, December 9, 2002. We believe that any additional cost savings must come from within the framework of our current agreement.
We all know the history. TWA, Pan Am, Eastern Airlines, and Braniff are no longer in existence. More than enough airlines have folded, abandoning workers and their families. The IAM is committed to prevent such a fate from occurring at US Airways.
As always, the membership will be advised of any new developments.
Sincerely and fraternally,
Scotty Ford
President
IAM District 141-M
