- Aug 20, 2002
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Hard-liners to head new lineup of US Airways' pilot union
Tuesday, February 03, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette
Leaders of the US Airways' pilots union are expected to decide today whether they should reopen contract talks with the Arlington, Va.-based carrier, which is trying to lower labor costs as it gears up to battle low-fare rivals such as Southwest Airlines.
The anticipated vote, coming after two days of informal talks last week and a company presentation yesterday in Arlington, focuses attention yet again on the pilots' 12-member Master Executive Council, the decision-making body for 4,000 US Airways pilots, 800 of whom are based in the Pittsburgh area. These same MEC board members are responsible for a series of disputed decisions over the last few years, agreeing to $565 million in wage-and-benefit cuts and to major changes in the pilots pension plan without a vote of all pilots, a move that still rankles some of the rank and file.
If this group intends to cooperate with management on more contract changes, it had better hurry. Starting March 1, the composition of the pilots' governing board will change dramatically as six members give up their seats to six new pilots who, according to MEC board member Fred Freshwater, are less likely to allow management to change the contracts again.
The 55-year-old US Airways pilot said many of the new members believe as he does that "the pilots have given an inordinate amount" in concessions already. The pilots union expects the company to ask for work rule changes designed to make flying more efficient and productive.
The money-losing carrier is examining all options, including asset sales and a cutback in the number of regional jets already ordered, to raise much-needed cash and meet the milestones imposed by $900 million in government-backed loans. It is expected to lay out all of its options to board members later this week.
US Airways has retained New York investment bank Morgan Stanley to analyze potential asset sales to other airlines, and the company has approached GE Capital Corp. about reducing the $4 billion, 170-regional jet order financed last year by GE, with the hope that the extra jets could be offered to other commuter carriers.
One such carrier, Phoenix-based Mesa Air, said yesterday that it planned to add eight 50-seat jets to its existing service contract with US Airways. Mesa, which operates as US Airways Express, has said it was interested in buying US Airways assets.
If the company gets approval for contract talks with the pilots, any decisions on work rule changes or productivity improvements would need the approval of the MEC board, comprising two pilots from each US Airways "base" -- Pittsburgh; Philadelphia; New York; Washington, D.C.; Charlotte, N.C.; and Boston.
The pilots stationed at each base choose their two representatives, a captain and first officer, and have the power to recall board representatives, as the pilots in Pittsburgh did last year when they replaced Tim Baker with Freshwater. Baker lost his post because he was one of nine who voted to terminate the pilots pension plan in March, replacing it with a new, less generous plan. Baker was the only MEC member to be recalled over the pension fund vote, but six other board members in Charlotte, New York, Philadelphia and Washington either lost re-elections or did not run again.
Freshwater argues that the rank and file sent a message when voting for new MEC members who toe a harder line with the company. "These pilots were put in by fairly significant margins," Freshwater said. "The pilots spoke fairly clearly that they do have somewhat of a different mind-set than what you currently see on the MEC."
Baker, the representative recalled over the pension vote, acknowledged the tensions, saying last month: "Do I understand why they took me out? Do I understand why the guys in Charlotte didn't win their re-election? Yes, I do. Is it the right decision? Well, I don't think it was."
When six new members join the MEC board in March, the two Pittsburgh representatives -- Freshwater and John Brookman -- will retain their seats on the board. Both are hard-liners.
Brookman voted against last spring's pension fund changes, and both he and Freshwater voted two weeks ago against sending the MEC's negotiating committee to US Airways' headquarters for a "fact-finding mission," thinking it made the pilots look too eager to negotiate. They were overruled on that vote, which reopened a dialogue between the pilots and management, leading to today's anticipated vote.
Bill Pollock, chairman of the MEC, defends the decisions of the past year by saying that the company would not have been able to make it out of bankruptcy without concessions from the pilots and that any criticism is from "Monday morning quarterbacks" who "weren't there."
Pollock's term ends March 23, only a few weeks after the six new members take office. He said last month that he had not decided whether to seek re-election.
The chairman could have scheduled the vote before the new officers start, "But I didn't think that was in the best interests of the pilot groups," Pollock said last month in an interview. "The council representatives that come in should elect their officers, whether they like me or not."
--------------------------------------------------------------------------------
(Dan Fitzpatrick can be reached at [email protected] or 412-263-1752.)
Copyright ©1997-2004 PG Publishing Co., Inc. All Rights Reserved.
Tuesday, February 03, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette
Leaders of the US Airways' pilots union are expected to decide today whether they should reopen contract talks with the Arlington, Va.-based carrier, which is trying to lower labor costs as it gears up to battle low-fare rivals such as Southwest Airlines.
The anticipated vote, coming after two days of informal talks last week and a company presentation yesterday in Arlington, focuses attention yet again on the pilots' 12-member Master Executive Council, the decision-making body for 4,000 US Airways pilots, 800 of whom are based in the Pittsburgh area. These same MEC board members are responsible for a series of disputed decisions over the last few years, agreeing to $565 million in wage-and-benefit cuts and to major changes in the pilots pension plan without a vote of all pilots, a move that still rankles some of the rank and file.
If this group intends to cooperate with management on more contract changes, it had better hurry. Starting March 1, the composition of the pilots' governing board will change dramatically as six members give up their seats to six new pilots who, according to MEC board member Fred Freshwater, are less likely to allow management to change the contracts again.
The 55-year-old US Airways pilot said many of the new members believe as he does that "the pilots have given an inordinate amount" in concessions already. The pilots union expects the company to ask for work rule changes designed to make flying more efficient and productive.
The money-losing carrier is examining all options, including asset sales and a cutback in the number of regional jets already ordered, to raise much-needed cash and meet the milestones imposed by $900 million in government-backed loans. It is expected to lay out all of its options to board members later this week.
US Airways has retained New York investment bank Morgan Stanley to analyze potential asset sales to other airlines, and the company has approached GE Capital Corp. about reducing the $4 billion, 170-regional jet order financed last year by GE, with the hope that the extra jets could be offered to other commuter carriers.
One such carrier, Phoenix-based Mesa Air, said yesterday that it planned to add eight 50-seat jets to its existing service contract with US Airways. Mesa, which operates as US Airways Express, has said it was interested in buying US Airways assets.
If the company gets approval for contract talks with the pilots, any decisions on work rule changes or productivity improvements would need the approval of the MEC board, comprising two pilots from each US Airways "base" -- Pittsburgh; Philadelphia; New York; Washington, D.C.; Charlotte, N.C.; and Boston.
The pilots stationed at each base choose their two representatives, a captain and first officer, and have the power to recall board representatives, as the pilots in Pittsburgh did last year when they replaced Tim Baker with Freshwater. Baker lost his post because he was one of nine who voted to terminate the pilots pension plan in March, replacing it with a new, less generous plan. Baker was the only MEC member to be recalled over the pension fund vote, but six other board members in Charlotte, New York, Philadelphia and Washington either lost re-elections or did not run again.
Freshwater argues that the rank and file sent a message when voting for new MEC members who toe a harder line with the company. "These pilots were put in by fairly significant margins," Freshwater said. "The pilots spoke fairly clearly that they do have somewhat of a different mind-set than what you currently see on the MEC."
Baker, the representative recalled over the pension vote, acknowledged the tensions, saying last month: "Do I understand why they took me out? Do I understand why the guys in Charlotte didn't win their re-election? Yes, I do. Is it the right decision? Well, I don't think it was."
When six new members join the MEC board in March, the two Pittsburgh representatives -- Freshwater and John Brookman -- will retain their seats on the board. Both are hard-liners.
Brookman voted against last spring's pension fund changes, and both he and Freshwater voted two weeks ago against sending the MEC's negotiating committee to US Airways' headquarters for a "fact-finding mission," thinking it made the pilots look too eager to negotiate. They were overruled on that vote, which reopened a dialogue between the pilots and management, leading to today's anticipated vote.
Bill Pollock, chairman of the MEC, defends the decisions of the past year by saying that the company would not have been able to make it out of bankruptcy without concessions from the pilots and that any criticism is from "Monday morning quarterbacks" who "weren't there."
Pollock's term ends March 23, only a few weeks after the six new members take office. He said last month that he had not decided whether to seek re-election.
The chairman could have scheduled the vote before the new officers start, "But I didn't think that was in the best interests of the pilot groups," Pollock said last month in an interview. "The council representatives that come in should elect their officers, whether they like me or not."
--------------------------------------------------------------------------------
(Dan Fitzpatrick can be reached at [email protected] or 412-263-1752.)
Copyright ©1997-2004 PG Publishing Co., Inc. All Rights Reserved.
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