After reading these motions it is clear the union's have very little if any opportunity to stop the 23% pay cuts except to immediately negotiate new long-term LCC type labor agreements. The court will hear the motion and arguments on October 7 and the cuts could occur immediately thereafter.
What's sad is that employees will suffer deeper pay and benefit cuts than were necessary due to the union's not reaching new labor accords prior to the bankruptcy filing.
US Airways will lose about $100 million in passengers "booking away" from the company, the carrier will lose important RJ feed/revenue, and the airline will see its costs go up due to expensive bankruptcy fees. Moreover, we could see a smalller mainline/RJ fleet and more job loss due to union leaders not listening to their advisors or management.
In a September 19 letter to all pilots ALPA MEC chairman Bill Pollock said, “US Airways president and CEO Bruce Lakefield has been upfront and forthright about US Airways’ plans for a possible bankruptcy filing. There have not been any surprises from him, and his integrity still governs his relationship with his employees.
Listed in the company’s motion are charts that were presented to each labor group’s leaders. Every labor group new of the consequences of not obtaining new consensual restructuring agreements prior to the “judicial restructuringâ€. In fact, ALPA’s advisors briefed the MEC in “open session†that the pilots could obtain a deal at 8o to 85% of the ask prior to the filing, 100% of the ask at the filing, and more of a cut in bankruptcy.
If employees do not like what is happening and the proposed 23% pay cut then they should compalin to their union reps who were warned their efforts could create "more pain" than was required for the rank-and-file.
Respectfully,
USA320Pilot
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