October 25, 2004
File: USA-18
2004-112
US Airways Bankruptcy Update
US Airways Presents Contract Proposals,
IAM Seeks Court Reconsideration
Dear Sisters and Brothers,
US Airways requested a meeting with the Machinists Union following the bankruptcy court's order imposing temporary concessions on IAM and other union members at the airline. In response, officials from the Grand Lodge, representatives from Districts 141 & 142 and our professional advisors today met with US Airways at the company's headquarters in Arlington, VA.
In the meeting, US Airways presented District 141 with proposals for long-term changes to their collective bargaining agreements. US Airways did not have a proposal prepared for District 142, but said one will be presented to the IAM on Tuesday, October 26, 2004.
The company has indicated that if consensual agreements are not achieved with any union it will ask the court to reject that union's contracts. These 1113© proposals, named after the section of bankruptcy law that permits companies to reject collective bargaining agreements, are attached in their entirety for your review.
The IAM and our professionals are examining the proposal to determine their necessity and potential impact on the membership. The IAM will formally respond to the company when our review is completed. Each member is urged to review US Airways' proposals carefully to understand the amount of additional concessions the airline is demanding.
Separately, the IAM today filed a motion in bankruptcy court for reconsideration of the court's October 15, 2004 order granting US Airways interim relief from collective bargaining agreements.
The magnitude of wage reductions and duration of interim relief granted US Airways is unjustified. By allowing the company to subcontract our members’ work and reduce pension contributions, the court has improperly granted US Airways permanent relief without allowing the formal negotiations and information sharing required by law.
The IAM requests that the Court reconsider the interim relief by lessening the wage reductions imposed upon IAM-represented employees, allowing full contractually-required employer contributions to the IAM National Pension Plan and prohibiting outsourcing of Airbus heavy maintenance.
The IAM has asked for a November 18, 2004 hearing on its motion for reconsideration, which is available on the Districts 141 & 142 web sites.
We will keep you informed of any new developments as they occur.
Sincerely and fraternally,
William O'Driscoll
PRESIDENT-DIRECTING
GENERAL CHAIRMAN
District Lodge 142
Randy Canale
PRESIDENT-DIRECTING
GENERAL CHAIRMAN
District Lodge 142
File: USA-18
2004-112
US Airways Bankruptcy Update
US Airways Presents Contract Proposals,
IAM Seeks Court Reconsideration
Dear Sisters and Brothers,
US Airways requested a meeting with the Machinists Union following the bankruptcy court's order imposing temporary concessions on IAM and other union members at the airline. In response, officials from the Grand Lodge, representatives from Districts 141 & 142 and our professional advisors today met with US Airways at the company's headquarters in Arlington, VA.
In the meeting, US Airways presented District 141 with proposals for long-term changes to their collective bargaining agreements. US Airways did not have a proposal prepared for District 142, but said one will be presented to the IAM on Tuesday, October 26, 2004.
The company has indicated that if consensual agreements are not achieved with any union it will ask the court to reject that union's contracts. These 1113© proposals, named after the section of bankruptcy law that permits companies to reject collective bargaining agreements, are attached in their entirety for your review.
The IAM and our professionals are examining the proposal to determine their necessity and potential impact on the membership. The IAM will formally respond to the company when our review is completed. Each member is urged to review US Airways' proposals carefully to understand the amount of additional concessions the airline is demanding.
Separately, the IAM today filed a motion in bankruptcy court for reconsideration of the court's October 15, 2004 order granting US Airways interim relief from collective bargaining agreements.
The magnitude of wage reductions and duration of interim relief granted US Airways is unjustified. By allowing the company to subcontract our members’ work and reduce pension contributions, the court has improperly granted US Airways permanent relief without allowing the formal negotiations and information sharing required by law.
The IAM requests that the Court reconsider the interim relief by lessening the wage reductions imposed upon IAM-represented employees, allowing full contractually-required employer contributions to the IAM National Pension Plan and prohibiting outsourcing of Airbus heavy maintenance.
The IAM has asked for a November 18, 2004 hearing on its motion for reconsideration, which is available on the Districts 141 & 142 web sites.
We will keep you informed of any new developments as they occur.
Sincerely and fraternally,
William O'Driscoll
PRESIDENT-DIRECTING
GENERAL CHAIRMAN
District Lodge 142
Randy Canale
PRESIDENT-DIRECTING
GENERAL CHAIRMAN
District Lodge 142