C
chipmunn
Guest
Today the Department of Labor said the nations economy lost jobs for the consecutive second month in October and the unemployment rate grew to 5.7 percent, providing another indication an economic recovery is stalling out.
The data may heighten expectations the Federal Open Market Committee will once again cut interest rates at its November 6 policy meeting.
If the Fed cuts rates, this will further place stress on defined benefit pension plans when 2002 actuary data is released in July 2003. With the PBGC a sitting/voting US Airways credtors committee member, this is likely to be a key event in the company's restructuring effort.
Some observers believe without changes to the pension plans across-the-board, US Airways will not be able to emerge from bankruptcy. Therefore, reports indicate the company and its labor unions are discussing ways to resolve this issue.
In addition, there are reports within the company that management is seeking ways to boost productivity. The following restructuring agreements state:
ALPA follow on discussion items are
1. Replace the current bid system with a Preferential bid system.
2. Modify the Reserve system.
3. Eliminate individual trip sign-in and automate the AIL.
4. Relax scheduling restrictions.
5. Modify rescheduling pay to scheduled or actual, for segments that operate.
6. Create on-premise reserves.
7. Combine B767D and B767I flying.
8. Use of medical/disabled pilots to conduct simulator training.
9. Establish training lines to reduce bought trips.
10. Permit pilot to move early to new bid to avoid inactive with pay status.
11. Permit use of TDY of up to contractual limits or extend training hold until next training class if a pilot is unable to report for initial training event and would become inactive with pay.
The Flight Attendant restructuring agreement says under SECTION 30: GENERAL New S. Productivity Offset:
No later than 30 days following the ratification of this Agreement, the parties shall commence negotiations over productivity improvements (including an “early-out†program if such program has not previously been agreed to prior to the date of ratification). Any savings that result from agreed to productivity improvements or an early-out program shall be returned to flight attendants in increased wage rates. The negotiations referenced above shall not be held pursuant to Section 6 of the Railway Labor Act.
For the IAM, the mechanic restructuring agreement says under Productivity Exchange:
The parties agree to meet to discuss modifications to IAM's collective bargaining agreement to allow IAM represented employees to buy-back wage concessions in exchange for productivity.
In addition, a standing committee of Union and Management Members will be established no later than January 1, 2003 with the responsibility of exploring and implementing measures to achieve cost savings by insourcing of work, improving the efficiency of operations and/or by any other methods that create cost savings for US Airways.
CWA & TWU restructuring agreements
The CWA restructuring agreement does not contain any language regarding further productivity discussions and its unclear if any of the three TWU units contain further productivity discussion language.
Chip
The data may heighten expectations the Federal Open Market Committee will once again cut interest rates at its November 6 policy meeting.
If the Fed cuts rates, this will further place stress on defined benefit pension plans when 2002 actuary data is released in July 2003. With the PBGC a sitting/voting US Airways credtors committee member, this is likely to be a key event in the company's restructuring effort.
Some observers believe without changes to the pension plans across-the-board, US Airways will not be able to emerge from bankruptcy. Therefore, reports indicate the company and its labor unions are discussing ways to resolve this issue.
In addition, there are reports within the company that management is seeking ways to boost productivity. The following restructuring agreements state:
ALPA follow on discussion items are
1. Replace the current bid system with a Preferential bid system.
2. Modify the Reserve system.
3. Eliminate individual trip sign-in and automate the AIL.
4. Relax scheduling restrictions.
5. Modify rescheduling pay to scheduled or actual, for segments that operate.
6. Create on-premise reserves.
7. Combine B767D and B767I flying.
8. Use of medical/disabled pilots to conduct simulator training.
9. Establish training lines to reduce bought trips.
10. Permit pilot to move early to new bid to avoid inactive with pay status.
11. Permit use of TDY of up to contractual limits or extend training hold until next training class if a pilot is unable to report for initial training event and would become inactive with pay.
The Flight Attendant restructuring agreement says under SECTION 30: GENERAL New S. Productivity Offset:
No later than 30 days following the ratification of this Agreement, the parties shall commence negotiations over productivity improvements (including an “early-out†program if such program has not previously been agreed to prior to the date of ratification). Any savings that result from agreed to productivity improvements or an early-out program shall be returned to flight attendants in increased wage rates. The negotiations referenced above shall not be held pursuant to Section 6 of the Railway Labor Act.
For the IAM, the mechanic restructuring agreement says under Productivity Exchange:
The parties agree to meet to discuss modifications to IAM's collective bargaining agreement to allow IAM represented employees to buy-back wage concessions in exchange for productivity.
In addition, a standing committee of Union and Management Members will be established no later than January 1, 2003 with the responsibility of exploring and implementing measures to achieve cost savings by insourcing of work, improving the efficiency of operations and/or by any other methods that create cost savings for US Airways.
CWA & TWU restructuring agreements
The CWA restructuring agreement does not contain any language regarding further productivity discussions and its unclear if any of the three TWU units contain further productivity discussion language.
Chip
