There seems to be no question that US Airways will continue to be restructured now that ALPA has agreed to assist the company in developing the “Going Forward Plan.†From the pilots perspective, the end result could be a contract similar in scope to JetBlue, which could also become the template for the Flight Attendants due to the “me too†clause. From this observers perch, it appears the flight crew could see hourly pay rate cuts, increased block hours from an 85 to 96 hour per month pay cap, work rule, benefit, and/or retirement changes.
According to the Pittsburgh Tribune-Review, inspired by a visit from Chairman David Bronner on Friday, US Airways pilots agreed to cooperate with management to further restructure the airline to make it look more like low-cost, low-fare competitors who are eroding its market share and threatening its survival. The union authorized its negotiating committee to hire consultants to supplement its investment banker and in-house resources. "This is going to be a total makeover," ALPA spokesman Captain Jack Stephan said.
For the CWA and IAM-FSA represented employees, I believe there will be some additional changes not yet permitted by their contract, but much of their changes can be implemented with the MDA, Mainline/Express, and new city contractor agreements.
TWU employees will be expected to make further changes, however, at this point it’s uncertain what their role will be in the unfolding restructuring towards the LCC lifestyle.
In regard to the other union employees, that primarily leaves the IAM-M and IAM-U employee groups. It’s my understanding the company previously provided the mechanics a plan to cost effectively conduct A320 overhaul in-house, but the IAM rejected the proposal. From the company’s perspective, the problem appears to be that with current union work rules, it takes US Airways’ mechanics 18 days to conduct a narrowbody overhaul and 13 days for a contractor. Not only is the current in-house work dramatically more expensive than a contractor, the aircraft is removed from service and revenue generation for 5 additional days. Therefore, the current in-house heavy maintenance creates a compound problem in comparison to the LCC’s due to additional costs and lost revenue.
Nobody likes this situation and I believe US Airways has some of the best mechanics in the business. But, after reading reports from Bronner’s comments last week, it does appear the mechanics have a choice. Either agree to cost effectively conduct the overhaul in-house or seek work elsewhere, since there are reports the company can conduct the maintenance elsewhere (not Indianapolis).
Interestingly, the USA Today recently published an article titled “Auto dealers face mechanics shortfall,†which could provide US Airways’ mechanics another option. In the article, the newspaper reported there is a shortage of mechanics and on average a recent survey found that each dealer will need to hire an average of two mechanics within the next six months, up from one a year earlier.
Moreover, basic training to become an auto technician takes at least 54 weeks and costs about $18,000, says Tina Miller-Steinke, a spokesman for Universal Technical Institute, which trains auto, marine, and motorcycle technicians. She says 60% of students get tuition loans or grants.
According to the Bureau of Labor Statistics automobile technicians can expect to graduate and receive an average starting hourly rate of $16.87, provided the newly trained auto mechanic can find one of the four positions available per year at a local dealer.
For those mechanics thinking about other alternatives, the Bureau of Labor also said Painting/Coating technicians earn an average hourly rate of $11.67 per hour.
Thus, with thousands of Pittsburgh and Charlotte mechanics facing possible near-term unemployment (just like other employees if the company is not further restructured), which will result in the loss of their current income of about $24 per hour, overtime opportunities, benefits, and retirement, there does seem to be some other employment options. However, some observers argue it may be in the IAM’s best interest to cut a cost effective deal with the carrier to conduct in-house heavy maintenance so the IAM does not lose most of its US Airways members.
Respectfully,
USA320Pilot
According to the Pittsburgh Tribune-Review, inspired by a visit from Chairman David Bronner on Friday, US Airways pilots agreed to cooperate with management to further restructure the airline to make it look more like low-cost, low-fare competitors who are eroding its market share and threatening its survival. The union authorized its negotiating committee to hire consultants to supplement its investment banker and in-house resources. "This is going to be a total makeover," ALPA spokesman Captain Jack Stephan said.
For the CWA and IAM-FSA represented employees, I believe there will be some additional changes not yet permitted by their contract, but much of their changes can be implemented with the MDA, Mainline/Express, and new city contractor agreements.
TWU employees will be expected to make further changes, however, at this point it’s uncertain what their role will be in the unfolding restructuring towards the LCC lifestyle.
In regard to the other union employees, that primarily leaves the IAM-M and IAM-U employee groups. It’s my understanding the company previously provided the mechanics a plan to cost effectively conduct A320 overhaul in-house, but the IAM rejected the proposal. From the company’s perspective, the problem appears to be that with current union work rules, it takes US Airways’ mechanics 18 days to conduct a narrowbody overhaul and 13 days for a contractor. Not only is the current in-house work dramatically more expensive than a contractor, the aircraft is removed from service and revenue generation for 5 additional days. Therefore, the current in-house heavy maintenance creates a compound problem in comparison to the LCC’s due to additional costs and lost revenue.
Nobody likes this situation and I believe US Airways has some of the best mechanics in the business. But, after reading reports from Bronner’s comments last week, it does appear the mechanics have a choice. Either agree to cost effectively conduct the overhaul in-house or seek work elsewhere, since there are reports the company can conduct the maintenance elsewhere (not Indianapolis).
Interestingly, the USA Today recently published an article titled “Auto dealers face mechanics shortfall,†which could provide US Airways’ mechanics another option. In the article, the newspaper reported there is a shortage of mechanics and on average a recent survey found that each dealer will need to hire an average of two mechanics within the next six months, up from one a year earlier.
Moreover, basic training to become an auto technician takes at least 54 weeks and costs about $18,000, says Tina Miller-Steinke, a spokesman for Universal Technical Institute, which trains auto, marine, and motorcycle technicians. She says 60% of students get tuition loans or grants.
According to the Bureau of Labor Statistics automobile technicians can expect to graduate and receive an average starting hourly rate of $16.87, provided the newly trained auto mechanic can find one of the four positions available per year at a local dealer.
For those mechanics thinking about other alternatives, the Bureau of Labor also said Painting/Coating technicians earn an average hourly rate of $11.67 per hour.
Thus, with thousands of Pittsburgh and Charlotte mechanics facing possible near-term unemployment (just like other employees if the company is not further restructured), which will result in the loss of their current income of about $24 per hour, overtime opportunities, benefits, and retirement, there does seem to be some other employment options. However, some observers argue it may be in the IAM’s best interest to cut a cost effective deal with the carrier to conduct in-house heavy maintenance so the IAM does not lose most of its US Airways members.
Respectfully,
USA320Pilot
h34r: Ur unbelievable Chip...U REALLY have no idea whats going to be negotiated between ALPA and the co. Furthermore, stop speaking for ever OTHER labor group. What an insult telling the mechanics what they should do and where they can go look for a job. GEE. maybe one of ur many underqualifed pilots can go work for Home Depot, since they all seem to have some level of expertise in EVERYTHING!!!. Always amazed at the audacity u have. PITBull is right on-"SHUT UP" for once and then things happen. Chip, u know less, im now convinced, than anybody esle on this board. Almost all of ur ridiculous predictions have NOT come true.
