C
chipmunn
Guest
I understand all of the labor unions will agree to discuss productivity, benefit, and pension changes and will meet the company's December 2 deadline for a unanimous decision to begin discussions.
However, in my opinion, if any union does not agree to open up negotiations, the US Airways Board could decide as early as December 3 to provide a 60-day notice to terminate that particular unions pension, per PBGC guidelines and the law.
In regard to ALPA, the union code-a-phone reported the MEC authorized the Negotiating Committee to engage in negotiations with the Company regarding modifications to the Pilots’ Pension Plan, in order to improve the chances of the PBGC approving the Company’s pension relief proposal, and the Negotiating Committee has re-entered into small jet negotiations with the Company.
Moreover, the ALPA MEC will reconvene in Arlington at the Key Bridge Marriott on Monday, December 2 at 11 a.m. to discuss the Company’s request for additional concessions. In my opinion, ALPA will reach an acceptable accord with the company and the other unions will discuss their options with the company.
Nonetheless, for example if all of the unions do not agree to discuss and reach concessions, the company can legally terminate individual or all pension plans and save over $500 million per year ($3.1 billion from 2003 to 2009), which would permit the final Plan of Reorganization to be submitted, access to the final DIP credit facility, loan guarantee, and equity investment, to permit a fast track bankruptcy emergence.
Again, the only question for employees is: Do you want your pension terminated or do you want to negotiate productivity, benefit, and pension changes?
The company is seeking $200 million per year in total labor concessions to obtain over $1.5 billion in total annual cuts, but has the legal option, without union agreement, to cancel the pension programs and realize a $500 million per year savings, which could provide the corporation with over $1.8 billion in annual savings.
Either way, it appears the airline will survive and the only question is how will the unions participate.
Chip
However, in my opinion, if any union does not agree to open up negotiations, the US Airways Board could decide as early as December 3 to provide a 60-day notice to terminate that particular unions pension, per PBGC guidelines and the law.
In regard to ALPA, the union code-a-phone reported the MEC authorized the Negotiating Committee to engage in negotiations with the Company regarding modifications to the Pilots’ Pension Plan, in order to improve the chances of the PBGC approving the Company’s pension relief proposal, and the Negotiating Committee has re-entered into small jet negotiations with the Company.
Moreover, the ALPA MEC will reconvene in Arlington at the Key Bridge Marriott on Monday, December 2 at 11 a.m. to discuss the Company’s request for additional concessions. In my opinion, ALPA will reach an acceptable accord with the company and the other unions will discuss their options with the company.
Nonetheless, for example if all of the unions do not agree to discuss and reach concessions, the company can legally terminate individual or all pension plans and save over $500 million per year ($3.1 billion from 2003 to 2009), which would permit the final Plan of Reorganization to be submitted, access to the final DIP credit facility, loan guarantee, and equity investment, to permit a fast track bankruptcy emergence.
Again, the only question for employees is: Do you want your pension terminated or do you want to negotiate productivity, benefit, and pension changes?
The company is seeking $200 million per year in total labor concessions to obtain over $1.5 billion in total annual cuts, but has the legal option, without union agreement, to cancel the pension programs and realize a $500 million per year savings, which could provide the corporation with over $1.8 billion in annual savings.
Either way, it appears the airline will survive and the only question is how will the unions participate.
Chip