Can someone explain this part of the IAM contract and if it has been invoked?
If a Successor is an air carrier, and the Successor conducts an operational merger
46 between the Company and the Successor or another air carrier, then the Successor will
10
provide the Company employees with a seniority integration governed by Sections 1 2, 3
2 and 13 of the Allegheny-Mohawk Labor Protective Provision.
3
4 Upon a change in control defined as the sale of all or substantially all of the assets
5 or common stock of the Company or US Airways Group in a single transaction (or in
6 multi-step related transactions) to a single purchaser (or a group of purchasers acting in
7 concert), the hourly rates of pay under this agreement shall be increased to the rates
8 which would have been effective following the Pay Parity Adjustment in October 2003
9 under the Pay Parity Letter of Agreement. In addition to such hourly rates of pay, the
10 IAM will have the right to extend the duration of the IAM Restructuring Agreement for
11 one, two or three years at the IAM’s option, past the amendable date of the IAM
12 Restructuring Agreement, with across the board wage increases of four and one half
13 percent (4.5%) on the amendable date and on each of the three (3) annual anniversaries of
14 the amendable date thereafter (i.e. 12/31/08, 12/31/09 and 12/31/10). For the purposes of
15 this paragraph, “Common Stock†is the Common Stock of US Airways Group then
16 outstanding and the Common Stock issuable on exchange, exercise, and/or conversion of
17 securities of the Company or US Airways Group which are then currently exchangeable
18 into, exercisable for, or convertible into such Common stock
19
If a Successor is an air carrier, and the Successor conducts an operational merger
46 between the Company and the Successor or another air carrier, then the Successor will
10
provide the Company employees with a seniority integration governed by Sections 1 2, 3
2 and 13 of the Allegheny-Mohawk Labor Protective Provision.
3
4 Upon a change in control defined as the sale of all or substantially all of the assets
5 or common stock of the Company or US Airways Group in a single transaction (or in
6 multi-step related transactions) to a single purchaser (or a group of purchasers acting in
7 concert), the hourly rates of pay under this agreement shall be increased to the rates
8 which would have been effective following the Pay Parity Adjustment in October 2003
9 under the Pay Parity Letter of Agreement. In addition to such hourly rates of pay, the
10 IAM will have the right to extend the duration of the IAM Restructuring Agreement for
11 one, two or three years at the IAM’s option, past the amendable date of the IAM
12 Restructuring Agreement, with across the board wage increases of four and one half
13 percent (4.5%) on the amendable date and on each of the three (3) annual anniversaries of
14 the amendable date thereafter (i.e. 12/31/08, 12/31/09 and 12/31/10). For the purposes of
15 this paragraph, “Common Stock†is the Common Stock of US Airways Group then
16 outstanding and the Common Stock issuable on exchange, exercise, and/or conversion of
17 securities of the Company or US Airways Group which are then currently exchangeable
18 into, exercisable for, or convertible into such Common stock
19
