Although yesterday's IAM-M news could be devastating to the reorganization, there was some positive news.
1. The IAM-FSA's ratified their restructuring agreement that if the airline survives will provide the company with $65 million per year in savings. This increases the employee giveback to $649.4 million + the "wholly owned" concessions.
2. The IAM-FSA agreement leaves just two employee groups to reach accords, the IAM-M and CWA, with their combined ATSB and DIP financing target concession $224 million per year pending.
3. The Company stated that it will continue to try to achieve voluntary agreements with all labor groups, but will pursue changes to the mechanics' contract through the bankruptcy court if unable to reach a new agreement quickly. At least there is open dialogue between IAM-M negotiators and the company before management asks the court to impose a contract with deeper cuts.
4. The Company Legal Department and the IAM-FSA attorney's do not have to focus time on the September 10 S.1113 hearing.
Chip
