Machinists Update

700UW

Corn Field
Nov 11, 2003
37,637
19,488
NC
US Airways Update
Judge Imposes Temporary Cost Reductions

Dear Sisters and Brothers,

After four days of hearings, a bankruptcy judge in Alexandria, Virginia today partially approved US Airways’ request for temporary contract modifications for the carrier’s unionized employees. This request was in addition to the $276 million per year in concessions that IAM members are already voluntarily providing the airline as a result of the company’s first bankruptcy.

Judge Mitchell ordered an immediate 21 percent wage reduction. He also limited the term reductions will be in effect to February 15, 2005. US Airways requested that the term extend through March 2005.

Judge Mitchell suspended contract provisions mandating aircraft fleet minimums, and allowed the carrier to temporarily subcontract Airbus heavy maintenance. He refused US Airways the right to subcontract work because of attrition or speculative job actions.

The 401(k) match has been temporarily eliminated, and contributions into the IAM National Pension Plan have been reduced from 5% to 3%.

IAM attorneys argued that US Airways’ requested modifications to the labor agreements were excessive and not essential to the carrier’s survival. US Airways is inappropriately using the 1113(e) process to achieve permanent changes to our collective bargaining agreements.

US Airways plans to file a motion asking the court to reject collective bargaining agreements if consensual agreements for long-term concessions are not achieved. We will respond to such a motion when it is filed.

It is clear that once again US Airways’ strategy is to reorganize on the backs of its employees without any clear plan for success. Unless a viable business plan is in place, no amount of negotiated or imposed concessions will save this carrier.

Today’s ruling will have far-reaching, dramatic consequences on all of US Airways’ unionized employees. The IAM is carefully reviewing the judge’s order to determine its full effect on the membership.

We will keep you updated as the situation develops.

Sincerely and fraternally,
William O'Driscoll
President-Directing General Chairman
IAM DL 142

Randy Canale
President-Directing General Chairman
IAM DL 141
 
i think thatpersonal bankrupticies could swell higher than anyone outside of usair could of ever imagined, may be large number of sickouts, work slowdowns could occur. it sure would be nice to throw in a few words about this inept bunch of clowns into the papers say like usatoday or the wash. post.! boy what a bunch of idiots we have running this airline!
 
I fear the IAM is still in denial. The hardships that this will cause could have been, and still can be avoided with a long term agreement that lowers usairway's cost.
 
robbedagain said:
i think thatpersonal bankrupticies could swell higher than anyone outside of usair could of ever imagined, may be large number of sickouts, work slowdowns could occur. it sure would be nice to throw in a few words about this inept bunch of clowns into the papers say like usatoday or the wash. post.! boy what a bunch of idiots we have running this airline!
[post="191366"][/post]​

Yeah, well, just remember if labor acts as stupid as management has they get four times the press coverage. It's a sick, sick, world and getting sicker...cough, cough.
 
jack mama said:
I fear the IAM is still in denial. The hardships that this will cause could have been, and still can be avoided with a long term agreement that lowers usairway's cost.
[post="191367"][/post]​

No I don't think they could have been avoided. There is no doubt whatsoever any agreement reached would've been violated/ignored, much like the Airbus S-check farmout of the previous concessionary agreement.
 
jack mama said:
I fear the IAM is still in denial. The hardships that this will cause could have been, and still can be avoided with a long term agreement that lowers usairway's cost.
[post="191367"][/post]​

Once liquidated, the company will have "industry leading" costs. And that's what is coming.

Given the company's penchant for breaking agreements on a whim, there is no reason to believe any further concessionary agreements will be honored.

I fully expect that the IAM will be the union that shuts the doors on this place in a few short months.

I think you are in denial.
 
ClueByFour said:
I fully expect that the IAM will be the union that shuts the doors on this place in a few short months.
[post="191392"][/post]​
Well, they are certainly the only union on the property with the balls to do it! I think you're in denial! If management can still only come up with a bankruptcy plan that consists of cutting the labor agreements to the bone, then this place needs to be shut down, period! Keep the wages up, keep it an honorable profession, let the market dictate, and grow a backbone! :rolleyes:
 
jack mama said:
I fear the IAM is still in denial. The hardships that this will cause could have been, and still can be avoided with a long term agreement that lowers usairway's cost.
[post="191367"][/post]​

You obviously sit at a desk somewhere and only took a 10% pay cut.

Unions are under attack and have been since Jerry Glass was commissioned to this property.

23% in straight wages or in some wages, vacation, pension, sick and working conditions is still major straight cash out of our pockets.

A long-term deal will NOT be better. It will be the same or worse as the entire contract is under attack for all of the labor groups.
 
700UW said:
US Airways Update
Judge Imposes Temporary Cost Reductions

Dear Sisters and Brothers,

After four days of hearings, a bankruptcy judge in Alexandria, Virginia today partially approved US Airways’ request for temporary contract modifications for the carrier’s unionized employees. This request was in addition to the $276 million per year in concessions that IAM members are already voluntarily providing the airline as a result of the company’s first bankruptcy.

Judge Mitchell ordered an immediate 21 percent wage reduction. He also limited the term reductions will be in effect to February 15, 2005. US Airways requested that the term extend through March 2005.

Judge Mitchell suspended contract provisions mandating aircraft fleet minimums, and allowed the carrier to temporarily subcontract Airbus heavy maintenance. He refused US Airways the right to subcontract work because of attrition or speculative job actions.

The 401(k) match has been temporarily eliminated, and contributions into the IAM National Pension Plan have been reduced from 5% to 3%.

IAM attorneys argued that US Airways’ requested modifications to the labor agreements were excessive and not essential to the carrier’s survival. US Airways is inappropriately using the 1113(e) process to achieve permanent changes to our collective bargaining agreements.

US Airways plans to file a motion asking the court to reject collective bargaining agreements if consensual agreements for long-term concessions are not achieved. We will respond to such a motion when it is filed.

It is clear that once again US Airways’ strategy is to reorganize on the backs of its employees without any clear plan for success. Unless a viable business plan is in place, no amount of negotiated or imposed concessions will save this carrier.

Today’s ruling will have far-reaching, dramatic consequences on all of US Airways’ unionized employees. The IAM is carefully reviewing the judge’s order to determine its full effect on the membership.

We will keep you updated as the situation develops.

Sincerely and fraternally,
William O'Driscoll
President-Directing General Chairman
IAM DL 142

Randy Canale
President-Directing General Chairman
IAM DL 141
[post="191354"][/post]​
This is such a gem!!!!! We,(the IAM), just got knocked on our azzes, and they are going to "fight" for us!!!!!! LMFAO!!!! I have been saying for months EXACTLY what happened today!!! Some people like to talk about CBA's.......I have said all along.... We are in BK, and the company will get what they want!!!!!!! Recent "victories", were hollow, like I said!!!! You know what everyone??? I'm mad :angry: Let's blame this all on the Republicans!!!!!!

LOL!!!!!!!!!!!!!!! 7 0 0.........Can you hear me now??? LOL LOL LOL LMFAO!!!!!!
 
NFS,

"We are in BK, and the company will get what they want!!!!!!!"

Guess you haven't read the ruling....

The company wanted 23%,said to be $38 million a month, for 5-1/2 months. That's $209 million.

They got 21% for 4 months. That's $139 million.

So they only got about 2/3 of what they wanted.

As the judge said, these cuts "should not be an end run" around talks between the company and its unions on permanent cuts.

The 21% gives the unions incentive to negotiate.

But the missing $70 million gives the company incentive to negotiate, too. And that's not counting the potential $96 million or more in extra fuel costs over projections or the higher "booking away" that CFO Davis testified to.

Jim
 
23% vs. 21%, four months or for five and a half. That's not the issue.

Even with the wage cuts, US will be hard pressed to meet the cash balance and other financial hurdles of the loan restructuring with ATSB, BOFA and RSA.

Pan Am I thought they had a deal. Until DL, the source of their funding, walked into a courtroom and announced "the world has changed".

If oil stays at $55 much longer, which a lot of people expect it to, it's all over in about three months. Maybe less.
 
PITbull said:
NFS,

What the hell is wrong with you?

You are sarcastic, LOUD, and appear to be a stalker. 700UW is not a female, stop trying so hard to catch his attention in every single one of your posts.
I respect any union that stands up to this managment. You may not agree, and think that rolling over, or rather getting steamed rolled, should be the order of the day.

What are you...a low life? Have you no self respect?
[post="191545"][/post]​



Come down from your throne oh great one...like you posted in the past...WANT TO SEE Your COMMENT ON OPINIONS… HMMM

Everyone has their opinions and why these boards, just because his behavior or mine or anyone else’s doesn’t fit "your" norm is meaningless and only makes you look like an A-z-z playing Miss virtue. For crying out loud give it a break you don’t run these boards or have a right to referee behavior.
 
cavalier said:
Come down from your throne oh great one...like you posted in the past...WANT TO SEE Your COMMENT OPN OPINIONS… HMMM

Everyone has their opinions and why these boards, just because his behavior or mine or anyone else’s doesn’t fit "your" norm is meaningless and only makes you look like an A-z-z playing Miss virtue. For crying out loud give it a break you don’t run these boards or have a right to referee behavior.
[post="191551"][/post]​

Funny Cav,

Since you decided to commence with posting again (when you said you would not post again). Make up your mind..coming or going..leaving or staying....posting or not posting...

Thought you had taken another job...guess not. Can't stand to be away from here, huh....

I thought I was to be on "ignore"...ah guess not that either.