August 5, 2004
File: USA-18 2004-67
US Airways Update
On August 3, 2004 General Vice President Robert Roach, Jr., Administrative Assistant Frank Celona, Airline Coordinator Jim Varsel, Grand Lodge Representative Joe Adinolfi, District 141 President/Directing General Chairman Randy Canale, District 142 President/Directing General Chairman William O’Driscoll, US Airways General Chairmen from Districts 141 & 142 and the District 141 Safety Chairman met in Washington, DC to review the status of US Airways, their demands for concessions from all the carrier’s employees and to review our cost savings ideas for presentation to US Airways.
In September 2002, IAM members approved US Airways’ proposals for concessions valued at $1.4 billion based on David Siegel’s promise that the airline would turn around and become profitable.
Just three months later, they again requested that IAM members provide an additional $354 million in cost savings to preserve the airline. The IAM advised US Airways management that if the membership voted to approve additional concessions, there would be no possibility of the agreements being opened again prior to the amendable date.
US Airways management committed that with those additional concessions there would not be a need to reopen the collective bargaining agreements. Based on the assurances by management, the membership voted to accept the additional concessions.
US Airways employees provided management with the tools they said they needed to fix the airline, and management failed. Now, management should listen to their employees’ ideas on what needs to be done for their carrier to survive.
While US Airways’ labor costs have been significantly reduced, its non-labor costs have skyrocketed. At the same time, its competitors have successfully reduced their non-labor costs.
In early 2004, US Airways’ Public Relations Department sent a message to all employees that the company would not survive without additional concessions. The IAM reminded the company of its commitment not to ask employees for additional concessions. Your Union advised US Airways, based on the direction and authority given to us by our members, “The Concession Stand is Closed.â€
In February, IAM Representatives, along with Flight Attendant and Pilot Representatives, met with US Airways Chairman Dr. David Bronner. At that meeting, the IAM expressed concern that the company was not being operated in an efficient, profitable manner.
Before and since that meeting, the IAM has repeatedly told the company that we are prepared to show them how to significantly reduce costs within the framework of our current collective bargaining agreements. We stand ready to do so.
After our members gave the concession in good faith the company opted to steal from them by subcontracting work that belongs to them under our collective bargaining agreement, forcing court action and arbitration to keep what is rightfully theirs and thereby adding to the cost structure.
Unless US Airways commits to addressing its non-labor problems, no amount of employee sacrifice will help the airline survive. We are still prepared to work with US Airways to correct the operational problems that our members have advised us currently exist.
US Airways is over-managed and over-supervised at costs detrimental to its future. The company can only survive if and when its cost structure is fixed. Management has failed us despite our sacrifices. Therefore, the time has come to listen to our recommendations so the company can achieve the significant cost savings necessary for its survival.
If you have any questions, please contact your General Chairman.
Sincerely and fraternally,
William O'Driscoll
PRESIDENT-DIRECTING
GENERAL CHAIRPERSON
Anthony Giammarco Bill Freiberger Steve Ebert David Snyder
GENERAL CHAIRMEN
DISTRICT LODGE #142
Tom Regan
REPRESENTATIVE
File: USA-18 2004-67
US Airways Update
On August 3, 2004 General Vice President Robert Roach, Jr., Administrative Assistant Frank Celona, Airline Coordinator Jim Varsel, Grand Lodge Representative Joe Adinolfi, District 141 President/Directing General Chairman Randy Canale, District 142 President/Directing General Chairman William O’Driscoll, US Airways General Chairmen from Districts 141 & 142 and the District 141 Safety Chairman met in Washington, DC to review the status of US Airways, their demands for concessions from all the carrier’s employees and to review our cost savings ideas for presentation to US Airways.
In September 2002, IAM members approved US Airways’ proposals for concessions valued at $1.4 billion based on David Siegel’s promise that the airline would turn around and become profitable.
Just three months later, they again requested that IAM members provide an additional $354 million in cost savings to preserve the airline. The IAM advised US Airways management that if the membership voted to approve additional concessions, there would be no possibility of the agreements being opened again prior to the amendable date.
US Airways management committed that with those additional concessions there would not be a need to reopen the collective bargaining agreements. Based on the assurances by management, the membership voted to accept the additional concessions.
US Airways employees provided management with the tools they said they needed to fix the airline, and management failed. Now, management should listen to their employees’ ideas on what needs to be done for their carrier to survive.
While US Airways’ labor costs have been significantly reduced, its non-labor costs have skyrocketed. At the same time, its competitors have successfully reduced their non-labor costs.
In early 2004, US Airways’ Public Relations Department sent a message to all employees that the company would not survive without additional concessions. The IAM reminded the company of its commitment not to ask employees for additional concessions. Your Union advised US Airways, based on the direction and authority given to us by our members, “The Concession Stand is Closed.â€
In February, IAM Representatives, along with Flight Attendant and Pilot Representatives, met with US Airways Chairman Dr. David Bronner. At that meeting, the IAM expressed concern that the company was not being operated in an efficient, profitable manner.
Before and since that meeting, the IAM has repeatedly told the company that we are prepared to show them how to significantly reduce costs within the framework of our current collective bargaining agreements. We stand ready to do so.
After our members gave the concession in good faith the company opted to steal from them by subcontracting work that belongs to them under our collective bargaining agreement, forcing court action and arbitration to keep what is rightfully theirs and thereby adding to the cost structure.
Unless US Airways commits to addressing its non-labor problems, no amount of employee sacrifice will help the airline survive. We are still prepared to work with US Airways to correct the operational problems that our members have advised us currently exist.
US Airways is over-managed and over-supervised at costs detrimental to its future. The company can only survive if and when its cost structure is fixed. Management has failed us despite our sacrifices. Therefore, the time has come to listen to our recommendations so the company can achieve the significant cost savings necessary for its survival.
If you have any questions, please contact your General Chairman.
Sincerely and fraternally,
William O'Driscoll
PRESIDENT-DIRECTING
GENERAL CHAIRPERSON
Anthony Giammarco Bill Freiberger Steve Ebert David Snyder
GENERAL CHAIRMEN
DISTRICT LODGE #142
Tom Regan
REPRESENTATIVE
hope theres no me too clauses in proposals currently being negoiated cause the IAM aint budgin!!! 
