Charlotte Observer
Asking a judge to reject labor contracts is a common tactic for airlines in bankruptcy court, and it can be a powerful incentive for unions to agree to cut pay and benefits. Unions and management typically reach consensual agreements before a judge has to rule.
The company's unions, which had anticipated Friday's motion, said they would not be bullied into signing bad deals with the Arlington, Va.-based company.
The airline is proposing to replace existing contracts with its latest offers to union leaders, which it says represent pay and practices consistent with low-cost competitors.
Under bankruptcy law, a judge can void labor agreements if he finds unions have rejected company proposals "without good cause."
Some leaders of the three unions say they don't fear taking their chances with a judge.
"I don't see the point in shooting our own selves in the head," said Mike Flores, a flight-attendant union leader from Charlotte. "If the judge wants to do it, then so be it."
In court documents, the airline said it would save $40 million from closing a maintenance facility. The company provided no further details. US Airways has heavy maintenance facilities in Pittsburgh and Charlotte.
USA320Pilot comments: Remeber when I said there could be more IAM "pain" and that each company proposal would get worse...
That agreement expires Jan. 15, and the company said that if permanent wage cuts are not in place by then, the ATSB is unlikely to extend it. That would leave the airline unable to use cash and would trigger a shutdown. The judge is expected to rule on the cuts by Jan. 1.
The airline seems to be close to an agreement with reservations and gate agents, who met with the company Friday. The two have agreed on many issues, including a new pay scale, but differ on the company's proposal to outsource certain reservations jobs. The company is scheduled to present a new proposal Tuesday.
USA320Pilot comments: Who first reported on this board the CWA contract news and that the parties were getting closer to an agreement?
Complete Story
Pittsburgh Tribune Reivew
US Airways is now seeking $716 million in wage and benefit cuts from the Association of Flight Attendants, the Communications Workers of America and the International Association of Machinists and Aerospace Workers. That's a $66 million increase from the airline's previous demand for $650 million from the three labor groups.
"These people are not operating in good faith," said Teddy Xidas, president-elect of the Association of Flight Attendants' master council. "They keep changing the targets. Obviously, they don't want an agreement with the flight attendants."
USA320Pilot comments: The CWA, AFA, and IAM script is playing like with ALPA. ALPA's financial and legal advisors told the MEC each company proposal would get worse because the company's finances would continue to deteriorate during negotiations. By playing hardball ALPA's RC4 made it worse for the pilot group and now other union leaders are doing the same thing to its membership. Each company proposal will likely continue to get worse and union leaders are failing their membership. The purpose of a union is to get the best deal possible, not the worst, which appears to be happening again at US Airways. If you're mad about this, voice your concern to your union leaders because every reader on this board was warned this could happen.
Complete Story
Pittsburgh Post-Gazette:
The airline then said it would be obligated to continue negotiations with the unions for new agreements to replace the ones imposed by the court. Those negotiations, the airline contends, would be conducted under the terms of the Railway Labor Act, which mandates a dispute resolution process including mediation through the National Mediation Board (NMB), and in rare cases, a Presidential Emergency Board.
The International Association of Machinists, the union that represents mechanics and baggage handlers, contends the judge has only two options in the US Airways case: reject the company's application and leave the labor contracts intact or approve the application and terminate the labor agreements.
If the judge allows the airline to reject its agreements, the IAM says US Airways would be free to impose wages, work rules and benefits. The judge, however, cannot impose permanent contract terms on the parties.
If there is no contract, it's possible unions could strike. But it was not clear yesterday what role, if any, the NMB might play in this new legal territory. An NMB spokesman was unavailable to comment.
This is untested legal ground, said Candace Johnson, spokeswoman for the Communications Workers of America, which represents customer service workers. She said the union is hoping the situation does not lead to a work stoppage.
"We keep moving forward in negotiations,'' Johnson said. "We're hoping we can work something out.''
Complete Story
Respectfully,
USA320Pilot
Asking a judge to reject labor contracts is a common tactic for airlines in bankruptcy court, and it can be a powerful incentive for unions to agree to cut pay and benefits. Unions and management typically reach consensual agreements before a judge has to rule.
The company's unions, which had anticipated Friday's motion, said they would not be bullied into signing bad deals with the Arlington, Va.-based company.
The airline is proposing to replace existing contracts with its latest offers to union leaders, which it says represent pay and practices consistent with low-cost competitors.
Under bankruptcy law, a judge can void labor agreements if he finds unions have rejected company proposals "without good cause."
Some leaders of the three unions say they don't fear taking their chances with a judge.
"I don't see the point in shooting our own selves in the head," said Mike Flores, a flight-attendant union leader from Charlotte. "If the judge wants to do it, then so be it."
In court documents, the airline said it would save $40 million from closing a maintenance facility. The company provided no further details. US Airways has heavy maintenance facilities in Pittsburgh and Charlotte.
USA320Pilot comments: Remeber when I said there could be more IAM "pain" and that each company proposal would get worse...
That agreement expires Jan. 15, and the company said that if permanent wage cuts are not in place by then, the ATSB is unlikely to extend it. That would leave the airline unable to use cash and would trigger a shutdown. The judge is expected to rule on the cuts by Jan. 1.
The airline seems to be close to an agreement with reservations and gate agents, who met with the company Friday. The two have agreed on many issues, including a new pay scale, but differ on the company's proposal to outsource certain reservations jobs. The company is scheduled to present a new proposal Tuesday.
USA320Pilot comments: Who first reported on this board the CWA contract news and that the parties were getting closer to an agreement?
Complete Story
Pittsburgh Tribune Reivew
US Airways is now seeking $716 million in wage and benefit cuts from the Association of Flight Attendants, the Communications Workers of America and the International Association of Machinists and Aerospace Workers. That's a $66 million increase from the airline's previous demand for $650 million from the three labor groups.
"These people are not operating in good faith," said Teddy Xidas, president-elect of the Association of Flight Attendants' master council. "They keep changing the targets. Obviously, they don't want an agreement with the flight attendants."
USA320Pilot comments: The CWA, AFA, and IAM script is playing like with ALPA. ALPA's financial and legal advisors told the MEC each company proposal would get worse because the company's finances would continue to deteriorate during negotiations. By playing hardball ALPA's RC4 made it worse for the pilot group and now other union leaders are doing the same thing to its membership. Each company proposal will likely continue to get worse and union leaders are failing their membership. The purpose of a union is to get the best deal possible, not the worst, which appears to be happening again at US Airways. If you're mad about this, voice your concern to your union leaders because every reader on this board was warned this could happen.
Complete Story
Pittsburgh Post-Gazette:
The airline then said it would be obligated to continue negotiations with the unions for new agreements to replace the ones imposed by the court. Those negotiations, the airline contends, would be conducted under the terms of the Railway Labor Act, which mandates a dispute resolution process including mediation through the National Mediation Board (NMB), and in rare cases, a Presidential Emergency Board.
The International Association of Machinists, the union that represents mechanics and baggage handlers, contends the judge has only two options in the US Airways case: reject the company's application and leave the labor contracts intact or approve the application and terminate the labor agreements.
If the judge allows the airline to reject its agreements, the IAM says US Airways would be free to impose wages, work rules and benefits. The judge, however, cannot impose permanent contract terms on the parties.
If there is no contract, it's possible unions could strike. But it was not clear yesterday what role, if any, the NMB might play in this new legal territory. An NMB spokesman was unavailable to comment.
This is untested legal ground, said Candace Johnson, spokeswoman for the Communications Workers of America, which represents customer service workers. She said the union is hoping the situation does not lead to a work stoppage.
"We keep moving forward in negotiations,'' Johnson said. "We're hoping we can work something out.''
Complete Story
Respectfully,
USA320Pilot
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