USflyer:
USflyer asked: "Can someone explain how the CWA and IAM contracts read with regards to staffing new stations?"
Chip answers: Usflyer, the CWA contract created a new job classification called Mainline/Express where up to 2 daily flights into Express cities can be operated where Express agents from other companies will do the mainline work. In addition, up to 4 daily flights can be operated into a new city without giving those jobs to mainline employees, giving those jobs to contractors.
The implication for labor is simple, the company can take high cost mainline labor positions and convert them to Express positions or contractors, in an on-going nation wide corporate effort to reduce labor expense, then return mainline flights to the abandoned city with Express employees working mainline flights – at much lower pay and benefits.
Every work group is seeing this with MAA (new MidAtlantic acronym) productivity enhancements, and job/procedure changes. The CWA has the Kiosk/internet reservation IT changes, the IAM with the loss of Utility/Mechanic pushbacks to Fleet Service, F/A aircraft minimum staffing, the A320 and possibly EMB-195 heavy maintenance being outsourced, ALPA furloughees permforming simulator training instead of Check Airman, etc.
The historical problem for US Airways' employees is that prior to the reorganization the airline had the highest labor expense as a percentage of revenue and management is addressing this issue across all work groups. Much of this problem is due to mature carrier work-rules with a primarily short-haul route network, however, the problem exists for one reason or another.
From a competitive position JetBlue (and for that matter other los cost competitors -- LCO's) has 70 employees per aircraft whereas US Airways has 110 employee per aircraft, which is about 50% higher than JetBlue and is non-competitive. This illustration clearly illustrates the problem at hand and why management is reducing headcount for the same number of ASMs.
I believe a major part of management's restructuring plan, agreed to by all labor groups, is a systematic dismantling of labor pay and work rules, which will reduce the corporate labor expense and move the company's cost structure more towards that of the LCC's. In my opinion, US management is creating a contingent work force within all of the employee groups that I define as contingent workers who are: Consultants, Part Time Employees, Contractors, Temps, and Express employees.
Best regards,
Chip