Mechanics Have Reason To Be Upset

[RV4]

The chart on this site shows 2002 Industry Cost Per Seat Mile.


http://www.fortune.com/fortune/articles/0,...,443062,00.html


UNITED AIRLINES had a cost that equaled 1.2 cents more per seat mile, yet, their mechanics only took a 13% paycut, have NO OSM's in overhual, Have NO loss of holidays, vacation, and sick time.
Thank you TWU
PS Can we get a break down of current Cost Per Seat Mile after concessions?

Quote from Article:

In a room strewn with hamburger wrappers, union officials lay on the floor in silent, stunned exhaustion.

Question:

Was that James C. Little laying on the floor in a fetal position sucking his thumb?​

 

[KCFlyer]

When''s the start date on that new job again?

 

[AAmech]

Typical Amfa logic. "Farming out half of their work doesn''t count as a cut". What ever happened to "protecting the profession"?

 

[RV4]

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On 5/3/2003 720 AM KCFlyer wrote:


When''s the start date on that new job again?

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I think I will stick around and keep you busy and concerned about it!

 

[Buck]

So you are advocating the OSM classification? If the company wants to farm out the work and the TWU wants lower wages farmed in. The company has been playing the TWU for years. The TWU is only interested in the dues from as many members as it can obtain. Overall unionism is down and the AFL-CIO has sent out the orders to organize as many as possible. It does not seem to matter what these potential members could earn. The TWU, AFL-CIO main concern is to boister their membership with no regard for improving ones standard of living. This is not unionism, this is the AFL-CIO attemping to survive as a political entity.

How can you condone a 17.5% paycut at one AFL-CIO represented airline and allow for a 13% paycut at another?

What is it AAMech, you do not care about your AFL-CIO brethern at other airlines?

 

[KCFlyer]

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On 5/3/2003 9:16:01 AM RV4 wrote:

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On 5/3/2003 720 AM KCFlyer wrote:


When''s the start date on that new job again?

----------------​

I think I will stick around and keep you busy and concerned about it!

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Oh, they turned you down, huh? I thank my lucky stars that I don''t have to work beside you, although I do feel sorry for the ones who do have to work with you.

 

[Boomer]

RV4,
From the link you provided above:

Bringing Down Costs - American, United, and US Airways are cutting costs, but the budget carriers (B) are still much leaner.

Carrier Cost per available seat mile, 2002
US Airways 11.0¢
United 10.4¢
American 9.2¢
Delta 8.4¢
Northwest 8.2¢
Continental 7.9¢
America West (B) 6.7¢
Southwest (B) 6.3¢
JetBlue (B) 5.3¢
Source: J.P. Morgan

From the story linked above, "American sought, and got, 20% cuts in labor costs; United and US Airways got closer to 30%." While we do not know exactly how close to 30% U and UAL actually got, we can use the chart and figure high which gives us a worst case competitive outlook.

Labor costs based on reductions in the article:
AA 9.4(.8)= 7.52
U 11.0(.7)= 7.70
UAL 10.4(.7)= 7.28

As you can see, we will all be fairly clustered around the same price point.
The remaining question is the calculation of the 2 Billion supposedly identified by AMR Management. Unless that number was added into the labor cost reduction. In that event, we did not get a 20% reduction because the Management savings have only been identified, not realized.

If the contribution to cost reduction accorded the 2 billion they have "identified" equates to the same percentage reduction in ASM costs achieved from Labor, then AMR falls well below both U and UAL and becomes competitive with AmWest, LUV and JB.

Labor Cost reductions plus 2 Billion in "Identified Cost Reductions"
AA 9.2(.6)= 5.52
U 11.0(.7)= 7.7
UAL 10.4(.7)= 7.28
AmWest 6.7
LUV 6.3
JBlu 5.3

The primary difference is that U & UAL are or have eliminated their debt loads at 2 to 3 cents on the dollar owed and either have recieved ATSB loan guarantees or will be able to re-apply on emergence . AmWest emerged from BK and recieved loan guarantees from the ATSB. LUV and JBlu are profitable with a much higher market capitalization and access to credit in addition to cash on hand. AMR is still encumbered by a total of some 22Billion in total debt and leases.

In my opinion, I still see a trip to Bankruptcy to eliminate the debt load but probably not until the labor concessions kick in enough to improve the cash position. The delay will make the DIPS more comfortable and could lower the rates for the service.

At that time, you can guarantee that the usual cast of characters will be back around engaging in Union bashing, telling those who don''t toe the party line to just leave, ...etc. You can also put money on the TWU rolling over again for further cuts.

The question for the AMTs is will we stay here for the next beating or will we be smart enough to get out in time? Getting out of the TWU will not stop the direction or outcome but will limit our downside and give us some control.

 

[RV4]

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On 5/3/2003 7:55:26 AM AAmech wrote:

Typical Amfa logic. "Farming out half of their work doesn''t count as a cut". What ever happened to "protecting the profession"?

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Typical TWU mind set.

70% of IAM voters ratify agreement, and you try to blame AMFA.

At least there are no IAM lawsuits over ratification. At the IAM leader didn''t admit publicly that the vote was not credible and needs to be revoted for crediblity, only to sign off with UAL.

Can we get a DICTATOR to sell us out with the largest consensual concession agreement in the history of organized labor so we can blame someone else for our demise?

 

[airlineorphan]

Here''s a little perspective for folks.

If you add up the cuts that AMR, US, and UAL have extorted from their employees and carry them out over the lives of the contracts, you get an amount equal to 1/2 the recent war appropriations budget:

Collectively, we have given up about $36 BILLION to management over the "lives" of our contracts.

Perhaps by the time the management is finished with Northwest, Delta and Continental, airline workers will have given enough to equal the cost of the Iraq war.

These figures are actually somewhat conservative. They don''t include the amount given up by US Airways pilots when their pension plan got raided by management. They are also based upon management versions of the numbers, which tend to lowball the actual value of concessions. And it''s always hard to calculate the value of the contract violations which are following the savaging of our collective bargaining agreements.

$36 BILLION is a pretty good haul for a complex mugging.

In solidarity,
Airlineorphan

P.S. I''ll post the breakdown and citations later.

 

[RV4]

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On 5/3/2003 10:31:52 AM KCFlyer wrote:




Oh, they turned you down, huh? I thank my lucky stars that I don''t have to work beside you, although I do feel sorry for the ones who do have to work with you.
----------------
​

You were content on blaming organized labor for all of the industry downfalls, now it is just RV4?

When is your next trip? Maybe we can fix you up from all that negative life you live and show you something positive?

 

[WXGuesser]

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On 5/3/2003 1:55:55 PM RV4 wrote:


You were content on blaming organized labor for all of the industry downfalls, now it is just RV4?



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Uh oh. He''s beginning to refer to himself in the third person. What''s next? Anti-Management rap albums and drivebys at TWU offices?



TANSTAAFL

 

[RV4]

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On 5/3/2003 3:31:33 PM WXGuesser wrote:

----------------
Uh oh. He''s beginning to refer to himself in the third person. What''s next? Anti-Management rap albums and drivebys at TWU offices?



TANSTAAFL

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While using an alias, I believe we are all referring ot ourselves as a second or third person.

 

[RV4]

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On 5/3/2003 443 PM WXGuesser wrote:

Ahem...
From the Guide to Grammar and Style by Jack Lynch


First Person.
Grammarians have divided references to people into three categories, to refer to I, you, and he or she. The first person is I, me, my, we, our, and so on. The second person is you and your. The third person is he, she, they, their, his, hers, him, her, and so on. While you need to pay close attention to these when you study a foreign language, most issues of person are instinctive to native English speakers.


TANSTAAFL


----------------​

Ahem...

From various sources:


[SIZE= 18pt]top•ic[/SIZE]

Pronunciation: (top''ik),
—n.
1. a subject of conversation or discussion: to provide a topic for discussion.
2. the subject or theme of a discourse or of one of its parts.
3. Rhet., Logic. a general field of considerations from which arguments can be drawn.
4. Also called theme. Ling.the part of a sentence that announces the item about which the rest of the sentence communicates information, often signaled by initial position in the sentence or by a grammatical marker. Cf. comment (def. 6).
THIS THREAD TOPIC:
[SIZE= 10.5pt]Mechanics Have Reason To Be Upset[/SIZE]
[SIZE= 10.5pt] [/SIZE]
[SIZE= 10.5pt]USAVIATION [/SIZE]
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[WXGuesser]

Ahem...
From the Guide to Grammar and Style by Jack Lynch

First Person.
Grammarians have divided references to people into three categories, to refer to I, you, and he or she. The first person is I, me, my, we, our, and so on. The second person is you and your. The third person is he, she, they, their, his, hers, him, her, and so on. While you need to pay close attention to these when you study a foreign language, most issues of person are instinctive to native English speakers.


TANSTAAFL

 

[Diesel8]

Not sure where JP Morgan numbers came from, but DAL own first quarter filling says:Fuel price neutralized CASM (cents)10.58 vs. March 2002 quarter CASM (cents)10.49. The "allout effort" called Song will supposedly have a CASM starting with 7 according to Selvaggio, of course 7.99 starts with .7

I doubt AA CASM will be 5.52, but if it does, AMR will indeed be quite the force to reckon with. That would put even mighty SWA on the defensive.