September 23, 2004
File: USA-18
2004-98
IAM / US AIRWAYS BANKRUPTCY UPDATE
TO: ALL IAM REPRESENTED EMPLOYEES
US Airways has notified the Machinists Union of its intention to seek temporary relief from labor contracts under Section 1113(e) of the U.S. Bankruptcy Code.
Although a bankruptcy judge cannot impose permanent amended contract terms, a judge may grant a request for temporary relief. If a judge imposes temporary modifications, they are not a matter for negotiations with the Union and are not subject to member ratification. For more information on the 1113(e) process, review the US Airways Bankruptcy Q&A at www.iamdl142.org and www.iam141.org.
US Airways is seeking an immediate pay reduction of 23 percent, ceasing payments to pension plans, eliminating the minimum aircraft it is required to operate and the outsourcing of IAM members’ work. The letter we received from US Airways is attached for your review.
The IAM has responded with a request for US Airways to provide sufficient information to independently assess the company’s need for such drastic contract modifications. IAM attorneys will fight to preserve your hard-earned contract language in bankruptcy court.
We will keep you advised as the process develops.
Sincerely and fraternally,
William O'Driscoll
PRESIDENT-DIRECTING
GENERAL CHAIRMAN
District Lodge #142
Mechanic and Related 1113e Letter
Maintenance Instructors 1113e Letter
Fleet Service 1113e Letter
File: USA-18
2004-98
IAM / US AIRWAYS BANKRUPTCY UPDATE
TO: ALL IAM REPRESENTED EMPLOYEES
US Airways has notified the Machinists Union of its intention to seek temporary relief from labor contracts under Section 1113(e) of the U.S. Bankruptcy Code.
Although a bankruptcy judge cannot impose permanent amended contract terms, a judge may grant a request for temporary relief. If a judge imposes temporary modifications, they are not a matter for negotiations with the Union and are not subject to member ratification. For more information on the 1113(e) process, review the US Airways Bankruptcy Q&A at www.iamdl142.org and www.iam141.org.
US Airways is seeking an immediate pay reduction of 23 percent, ceasing payments to pension plans, eliminating the minimum aircraft it is required to operate and the outsourcing of IAM members’ work. The letter we received from US Airways is attached for your review.
The IAM has responded with a request for US Airways to provide sufficient information to independently assess the company’s need for such drastic contract modifications. IAM attorneys will fight to preserve your hard-earned contract language in bankruptcy court.
We will keep you advised as the process develops.
Sincerely and fraternally,
William O'Driscoll
PRESIDENT-DIRECTING
GENERAL CHAIRMAN
District Lodge #142
Mechanic and Related 1113e Letter
Maintenance Instructors 1113e Letter
Fleet Service 1113e Letter