The economy is worsening, fuel prices are rising, passenger loads are dramatically off industry-wide, and the United States is on the verge of a second war: The war on terror and the invasion of Iraq.
The simple issue is this company is bankrupt and its receipts do not cover its expenses. The DIP financing or Credit Facility and Loan Guarantee require both IAM & CWA restructuring agreements.
Without concessionaire accords, this funding will be unavailable and the company could liquidate. Who wins? AA, UA, DL, NW, CO, & WN.
However, the bankrutpcy court has a resonsibility to the debtor and the creditors. Therefore, Judge Mitchell will have no option, but to approve the company's motion to cancel any union contract that has not been restructured or the airline will fail.
Let's not forget the Pittsburgh Post-Gazette said on the (IAM's) Web site advise members that if the proposal isn't ratified, US Airways will ask for deeper concessions in bankruptcy court. It also warns that the U.S. Bankruptcy Court for the Eastern Virginia District, which is based in Alexandria, Va., and is hearing the case, has a reputation for moving cases quickly and being anti-labor.
Therefore, doesn't make sense to limit the pain and vote yes? Or is it worth being emotional and getting hurt more?
Chip