Labor Friendly Dave is at it again

LavMan

Veteran
Feb 12, 2003
826
0
This is Roy Freundlich with a US Airways MEC update for Wednesday, May 7.

ALPA has received a cost analysis from the Company on the impact the industry-supported restoration/preservation funding legislation would have on the US Airways’ pension funding costs (which includes special pension funding requirements for air carriers).

The Company’s initial analysis adds a year beyond the ATSB loan term and contains other inconsistencies. However, when the analysis is corrected for contractual provisions and compliance, the funding costs for all employee groups is lower than the costs included in the Plan of Reorganization (POR) disclosure statement specified in LOA 85 and the ATSB loan terms, even without the additional increased costs of the follow on pilot DC plan.

In fact, the Company’s total yearly pension funding costs for all employee groups under legislative funding relief would be approximately 305 million dollars, 20 million dollars per year below what US Airways told the ATSB and the bankruptcy court it could afford in the POR disclosure statement (the 325 million dollars per year specified in LOA 85). The Company is contractually obligated to support this legislation.

Furthermore, when compared to the costs of the follow on pilot DC plan combined with the funding requirements for other employee groups’ pensions, the Company would benefit from an approximately 300 million dollar cash savings under the proposed pension legislation during the ATSB loan period (2003-2009).

Under this legislation, the Company’s funding obligations for all DB plans drop to 2.14 billion dollars (down from 3.14 billion dollars under the previous DB funding obligation and down from 2.45 billion dollars under the current other-employee DB plans and pilot-DC plan funding obligations).

Most importantly, under legislative funding relief our pilots will have significantly improved benefits from the restored DB Plan compared to the current DC plan, and at a lower funding cost to the Company over the next seven years.

President and CEO David Siegel is responding to pilot email with misleading and false statements concerning the provisions of LOA 85, and what is actually specified in the POR. There is no reference to the previous failed legislative attempt for 30-year restoration funding. Your MEC worked closely with ALPA National to ensure that the language created for the new legislation, if approved, would fully restore US Airways pilots’ DB plan. This legislation is supported by all major airlines—except US Airways—and by other airline unions, including the IAM and the AFA. Mr. Siegel fails to mention that the original restoration funding legislation was unsuccessful, in part, because it only involved a fix for US Airways when Congress was seeking an industry solution. This language has now been updated to accommodate the industry and still solves US Airways’ specific situation.

Mr. Siegel’s latest attempt to mislead the pilot group should be recognized by all pilots as a refusal to help restore our DB plan and a continued attempt to refuse to honor our contract. His response includes references to receiving financing for small jets, which is completely unrelated to the terms agreed to for restoring our defined benefit plan

We cannot let David Siegel and US Airways management torpedo a legislative solution, again. This is about your retirement benefits, which they care very little about as indicated in their responses to you. Your MEC needs all pilots to take part in the current communications campaign, to remind management of their contractual obligation to pursue and support restoration of our DB plan through NEW legislation. A letter from MEC Chairman Bill Pollock containing directions for this campaign has been posted on the MEC website at usairwayspilots.org and has also been hard-copy U.S. mailed to all US Airways pilots, including retired pilots.

In addition, all legal avenues are being pursued. A grievance on this issue is being prepared and should be filed by Friday because management is not complying with the provisions of LOA 85.

Informational picketing is being considered and organized. Please indicate your willingness and availability to participate through the feedback link on the MEC website.

Your MEC representatives thank you in advance for participating in this important effort.

Please remember we have 1,827 pilots on furlough with 52 pilots scheduled for furlough on June 4, 2003.

Thank you for listening.