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USA320 says labor relations are better now.
Judge Approves Part Of Us Airways Severance Plan
- Thread starter jB-Rocks
- Start date
From IAM District 142:
US Airways Update
The United States Bankruptcy Court of the Eastern District of Virginia, Alexandria Division, has issued the following order regarding the Transaction Retention Program:
ORDER
A hearing was held in open court on May 31 and June 1, 2005, on the motion (Doc. #2125) by the Debtors in Possession for an order approving and authorizing a Transaction Retention Program consisting of (1) officer employment contracts and (2) severance and retention policies for salaried employees, as subsequently revised by Debtor’s Reply Memorandum, filed May 27, 2005 (the “Reply Briefâ€), and on the objections filed by W. Clarkson McDow, Jr., United States Trustee, Region Four, the Air Line Pilots Association, the Association of Flight Attendants, the Communication Workers of America, AFL-CIO, and the International Association of Machinists.
Upon consideration of the pleadings, testimony, exhibits, and arguments of counsel, and for the reasons stated in the memorandum opinion filed with this order, it is
ORDERED:
1. The Motion is granted in part and denied in part.
2. The Debtors are authorized to implement that portion of the Transaction Retention Program as set forth in the Motion, as modified, consisting of (i) the implementation of the amended and restated severance policies for Managing Directors and for covered employees below the level of Managing Director (Exhibits 9 and 10 to the Motion) as amended and introduced as evidence at the May 31 hearing as further modified by Paragraph 3 below; and (ii) the implementation of the Retention Payment Program as set forth in the Motion (Exhibit 12 to the Motion) and as amended and introduced at the May 31 hearing and as further modified by Paragraph 3 below.
3. Notwithstanding the terms of the Motion, the exhibits attached to the Motion, and the exhibits introduced at the May 31, 2005 hearing, pursuant to the negotiations between the Debtors and the Official Unsecured Creditors Committee, the following conditions shall apply to the implementation of the Transaction Retention Program authorized by this Order:
(i) The aggregate amount of all administrative expense claims allowable in a liquidation (in either Chapter 7 or Chapter 11) under the Amended and Restated Management Employee Service Benefit Policy, the Amended and Restated Severance Benefit Policy for Managing Directors, and the US Airways Inc. Transaction Retention Payment Plan all together shall not exceed $15 million paid by the Debtors’ estates; and
(ii) The Debtors shall report to the Committee during the pendency of the case every time its total expenditures under the Transaction Retention Payment Plan passes a whole multiple of $250,000;
4. The Debtors are not authorized at this time to implement that portion of the Transaction Retention Program consisting of the 23 officer employment contracts described in the Motion as postpetition contracts. This ruling, however, is without prejudice to the right of the Debtors to seek approval of such contracts in connection with the confirmation of a plan of reorganization.
5. The clerk shall mail a copy of the memorandum opinion and this order, or give electronic notice of their entry, to the parties listed below.
In sum and substance, the court order will eliminate 25 senior management from the Transaction Retention Program and will reduce the golden parachutes by 27 million dollars.
We will keep you advised of future developments as they occur.
Sincerely and fraternally,
William O’Driscoll
President and Directing General Chairman
US Airways Update
The United States Bankruptcy Court of the Eastern District of Virginia, Alexandria Division, has issued the following order regarding the Transaction Retention Program:
ORDER
A hearing was held in open court on May 31 and June 1, 2005, on the motion (Doc. #2125) by the Debtors in Possession for an order approving and authorizing a Transaction Retention Program consisting of (1) officer employment contracts and (2) severance and retention policies for salaried employees, as subsequently revised by Debtor’s Reply Memorandum, filed May 27, 2005 (the “Reply Briefâ€), and on the objections filed by W. Clarkson McDow, Jr., United States Trustee, Region Four, the Air Line Pilots Association, the Association of Flight Attendants, the Communication Workers of America, AFL-CIO, and the International Association of Machinists.
Upon consideration of the pleadings, testimony, exhibits, and arguments of counsel, and for the reasons stated in the memorandum opinion filed with this order, it is
ORDERED:
1. The Motion is granted in part and denied in part.
2. The Debtors are authorized to implement that portion of the Transaction Retention Program as set forth in the Motion, as modified, consisting of (i) the implementation of the amended and restated severance policies for Managing Directors and for covered employees below the level of Managing Director (Exhibits 9 and 10 to the Motion) as amended and introduced as evidence at the May 31 hearing as further modified by Paragraph 3 below; and (ii) the implementation of the Retention Payment Program as set forth in the Motion (Exhibit 12 to the Motion) and as amended and introduced at the May 31 hearing and as further modified by Paragraph 3 below.
3. Notwithstanding the terms of the Motion, the exhibits attached to the Motion, and the exhibits introduced at the May 31, 2005 hearing, pursuant to the negotiations between the Debtors and the Official Unsecured Creditors Committee, the following conditions shall apply to the implementation of the Transaction Retention Program authorized by this Order:
(i) The aggregate amount of all administrative expense claims allowable in a liquidation (in either Chapter 7 or Chapter 11) under the Amended and Restated Management Employee Service Benefit Policy, the Amended and Restated Severance Benefit Policy for Managing Directors, and the US Airways Inc. Transaction Retention Payment Plan all together shall not exceed $15 million paid by the Debtors’ estates; and
(ii) The Debtors shall report to the Committee during the pendency of the case every time its total expenditures under the Transaction Retention Payment Plan passes a whole multiple of $250,000;
4. The Debtors are not authorized at this time to implement that portion of the Transaction Retention Program consisting of the 23 officer employment contracts described in the Motion as postpetition contracts. This ruling, however, is without prejudice to the right of the Debtors to seek approval of such contracts in connection with the confirmation of a plan of reorganization.
5. The clerk shall mail a copy of the memorandum opinion and this order, or give electronic notice of their entry, to the parties listed below.
In sum and substance, the court order will eliminate 25 senior management from the Transaction Retention Program and will reduce the golden parachutes by 27 million dollars.
We will keep you advised of future developments as they occur.
Sincerely and fraternally,
William O’Driscoll
President and Directing General Chairman
calibrator
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delldude said:
cAbd al-Raiim --Servant of The Compassionate
livingontheedge
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Way to go Judge Mitchell!
The only thing I disagree with is retention bonuses; if the severence package is enhanced, or put into place in the case where there is none, that should be incentive enough to stay.
Does anyone know what type of severence plans WERE in place for non-officers? I know the officers already had huge severence clauses in their contracts.......just check out the last yearly report.....ridiculous and insulting to ask for more.
The only thing I disagree with is retention bonuses; if the severence package is enhanced, or put into place in the case where there is none, that should be incentive enough to stay.
Does anyone know what type of severence plans WERE in place for non-officers? I know the officers already had huge severence clauses in their contracts.......just check out the last yearly report.....ridiculous and insulting to ask for more.
MarkMyWords
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I had a friend that was a low level manager and was severed in a previous round of cuts and I believe he got a severance payment similar to contract employees. 1 week of pay for every year of service.
PineyBob said:
While I totally agree that he applied the law fairly and also totally agree that top officers should not receive bonuses for staying to run the airline, I must ask one question.
How is this a "victory" for the average worker? This may be a blow to the top officers, but what did we "win"? What is everyone so proud of?
It is not a blow to the top officers, when US files the POR you will see the severence and retention bonuses in their new contracts.
Just wait and see, even Judge Mitchell said that is where they should be filed.
And what was won was that people that have flown this company into the ground and raped their employees economically should not be rewarded.
How much is your bonus?
Just wait and see, even Judge Mitchell said that is where they should be filed.
And what was won was that people that have flown this company into the ground and raped their employees economically should not be rewarded.
How much is your bonus?
700UW said:
So..... Did I not tell this forum that the judge would
split the deal in two and reject the Officer Retention
Bonus portion of the request?
It's all part of Jerry Glass's plan to fix morale. He
knew the judge would never approve the retention
bonuses and he put it in the proposal so that labor
would think they won something, and morale would
go up because of it. Jerry's a shrewd player. Does
he have a Psychology degree?
RowUnderDCA
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PITbull said:
His attitude reflects a cultural split in our country that is growing deeper and wider and more dangerous for our society. And we're not even thinking about it.
TheLarkAscending
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RowUnderDCA said:
I do believe that we're thinking about it. However, the voices aren't being heard because they're the voices with the least amount of capital behind them.
Ohhh no, you pushed my buttons! 😉
There is only one place of macro-influence in this life where you and I are the same size as Jack Welch or Jerry Glass - the ballot box.
Democracy, in the long term, must have an informed and engaged citizenry.
It is certainly untoward, to say the least, that many of our elected officials sell themselves to the highest bidder. But, have we held them accountable? The answer is before your face.
It is unseemly, to say the least, of many of our corporate leaders to facilitate a return to the Hoover era. We have had a regulated capitalism (the best of all economic systems, in my view) for 50 years, that has created more wealth than the world has ever seen. Who has let corporate interests overrun public ones? We have.
You don't need a black helicopter conspiracy theory to explain it - simple insight into the human condidtion, that the Founders had in abundance - will suffice.
Just for a short insight into how corporate and political interests have merged, have a look at this:
http://www.consumerwatchdog.org/healthcare/nw/nw003495.php3
http://www.laweekly.com/ink/03/08/news-ireland.php
You don't see this on the networks, do you?
I know here in the hinterlands, people are hungry for honest leadership that can deliver a new "Square Deal."
http://www.historychannel.com/speeches/arc...speech_263.html
The first leader that credibly does so will run the table.
Of course, the status quo wants to keep such a person down. Look at how they have treated mavericks as disparate as McCain and Edwards.
But, sooner or later, the tipping point will come. I have reservations for a front row seat.
There is only one place of macro-influence in this life where you and I are the same size as Jack Welch or Jerry Glass - the ballot box.
Democracy, in the long term, must have an informed and engaged citizenry.
It is certainly untoward, to say the least, that many of our elected officials sell themselves to the highest bidder. But, have we held them accountable? The answer is before your face.
It is unseemly, to say the least, of many of our corporate leaders to facilitate a return to the Hoover era. We have had a regulated capitalism (the best of all economic systems, in my view) for 50 years, that has created more wealth than the world has ever seen. Who has let corporate interests overrun public ones? We have.
You don't need a black helicopter conspiracy theory to explain it - simple insight into the human condidtion, that the Founders had in abundance - will suffice.
Just for a short insight into how corporate and political interests have merged, have a look at this:
http://www.consumerwatchdog.org/healthcare/nw/nw003495.php3
http://www.laweekly.com/ink/03/08/news-ireland.php
You don't see this on the networks, do you?
I know here in the hinterlands, people are hungry for honest leadership that can deliver a new "Square Deal."
http://www.historychannel.com/speeches/arc...speech_263.html
The first leader that credibly does so will run the table.
Of course, the status quo wants to keep such a person down. Look at how they have treated mavericks as disparate as McCain and Edwards.
But, sooner or later, the tipping point will come. I have reservations for a front row seat.
MMW, I take it that you will be one of the employees that will profit from Mitchell's decision...MarkMyWords said:
Can you honestly say that you deserve this money ?
After All, Employees that will be recieving this money have contributed a whopping 1% [at the most] to the "Transformation" program, While your fellow employees have contributed [for starters] at LEAST 18 % !
Oh, But the company Has to Retain these fine people or the company will be forced to shut down....[What a Crock]...
Please enjoy your raise, which came off the backs of your fellow employees..
Although I am not with U, just yet!, I think that this was the best decision that could have been made. I am sure they are bent at CCY, but you know what, driving an airline into doesn't mean you get money for doingit!
That is for the Managers that make a difference and care to take their ppl.
I can tell you this though. HP does not put up with the "my way or the highway" type of Manager. They for some reason get filtered out very quickly. The station employees are a reflection of their Manager(s), ever noticed that the most miserable employees also have the highest # of cust complaints. Doesn't take a much to say, if your ppl are happy, your cust are happy.
Anyway.......
That is for the Managers that make a difference and care to take their ppl.
I can tell you this though. HP does not put up with the "my way or the highway" type of Manager. They for some reason get filtered out very quickly. The station employees are a reflection of their Manager(s), ever noticed that the most miserable employees also have the highest # of cust complaints. Doesn't take a much to say, if your ppl are happy, your cust are happy.
Anyway.......
